LATAM CLOSE-Sigma raises US$1bn in LatAm primary market

lunes 25 de abril de 2016 15:53 GYT
 

* Sigma prints tight 10-year on strong demand
    * Brazil's Oi negotiates with bond investors
    * Creditors holding US$1.2bn in Cuban debt talk to Havana

    By Mike Gambale
    NEW YORK, April 25 (IFR) - Below is a recap of primary issuance activity in
the LatAm market on Monday:
    
    Number of deals priced: 1
    Total volume: US$1bn
        
    SIGMA ALIMENTOS
    Sigma Alimentos S.A. DE C.V., Baa3/BBB/BBB, announced a US$ benchmark
144A/RegS 10-year (5/02/2026) senior unsecured note offering. Active joint
bookrunners are Bank of America, JPMorgan. Passive joint bookrunners are
Mitsubishi, Rabo Securities. UOP: Pay certain existing bank indebtedness and for
general corporate purposes. Settlement: T+5
    IPT: T+262.5bp area
    PRICE GUIDANCE: 10-year USD benchmark at 235bp area
    LAUNCH: US$1bn at T+225bp
    PRICED: US$99.797; 4.125%C; 4.15%Y; T+225bp; Settlement May 2 2016; May 2
2026
    BOOK: US$3.5bn
    NIC: negative 3bp (vs. 5.25% '24s at G+238bp, subtract 10bp for one-notch
rating differential, FV=G+228bp)
    COMPS:
    ALFA (Baa3/BBB-/BBB-) 5.25% March 25, 2024 at G+238bp
    
    Here is a snapshot of LatAm sovereign credit spreads:        
     SOVEREIGN       4/22  4/21  4/20  1D   10D    YTD     2015/16 HIGH
 BARBADOS            644   645   648   -1   -16    40     659 (2/11/16)
 BRAZIL              381   371   360   10   -11   -105    542 (2/11/16)
 CHILE                77    73    75    4   -22    -9     143 (2/11/16)
 COLOMBIA            255   246   248    9   -28    -34    412 (2/11/16)
 COSTA RICA          464   463   461    1   -16    -53    587 (2/11/16)
 DOMINICAN REP       415   416   403   -1    -4     0     542 (2/11/16)
 ECUADOR             1117  1119  1142  -2   -52   -198    1765 (2/11/16)
 EL SALVADOR         611   610   606    1   -51    -29    840 (2/11/16)
 GUATEMALA           268   266   259    2   -18    -34    385 (2/11/16)
 JAMAICA             422   421   422    1   -13    -27    519 (2/11/15)
 MEXICO              179   171   173    8   -21    -15    278 (2/11/16)
 PANAMA              182   179   179    3   -23    -24    272 (2/11/16)
 PERU                186   182   181    4   -24    -45    291 (2/10/16)
 TRINIDAD & TOBAGO   142   145   147   -3   -22    44     173 (1/15/15)
 URUGUAY             242   241   239    1   -25    -26    344 (2/11/16)
 VENEZUELA           2966  2973  2989  -7   -385   174    3713 (2/12/16)
    Source: Bank of America Merrill Lynch Master Index
    
    SPREAD TRENDS:
    Ten-day trend shows all LatAm credits tighter, led by Venezuela
    YTD 12 out of 16 credits tighter    
    
    PIPELINE:
    Colombia's Grupo Sura has wrapped up roadshows through Bank of America
Merrill Lynch and JP Morgan ahead of a possible USD 144A/RegS bond. The
financial services company is rated BBB/BBB by S&P and Fitch. 
    
    The Province of Mendoza is looking to raise US$300m in both the local and
international markets to refinance debt, according to local reports.

    Guatemala has hired Bank of America Merrill Lynch to lead a potential
international bond offering of around US$500m.

    Neuquen province is contemplating a bond issue.
    
    Argentine E&P company Medanito has wrapped up roadshows ahead of a possible
transaction through Itau and UBS. Expected rating is CCC+ by Fitch.
    
    Argentina utility Pampa Energia's shareholders have approved a US$500m debt
program.

 (Reporting By Michael Gambale; editing by Shankar Ramakrishnan)