LATAM CLOSE-Primary market takes a breather

jueves 6 de octubre de 2016 15:44 GYT
 

* LatAm primary set to slow as focus shifts to IMF meeting
    * LatAm Airlines mandates US$ 7-year deal
    * Market softer on ECB headlines, nerves ahead of payrolls
    * Bermuda's trade could come as soon as Tuesday

    By Mike Gambale
    NEW YORK, Oct 6 (IFR) - No deals priced in the LatAm primary market on
Thursday.
     
    Below is a snapshot of LatAm sovereign credit spreads:
      SOVEREIGN       10/5  10/4   10/3  1D   10D   YTD    2015/16 HIGH
 ARGENTINA            423    420   422    3    13    -          -
 BARBADOS             635    638   645   -3    -9    31   659 (2/11/16)
 BRAZIL               296    293   288    3    13   -190  542 (2/11/16)
 CHILE                 64    68     70   -4    -9   -22   143 (2/11/16)
 COLOMBIA             212    210   204    2    12   -77   412 (2/11/16)
 COSTA RICA           384    382   387    2    4    -133  587 (2/11/16)
 DOMINICAN REP        343    338   338    5    2    -72   542 (2/11/16)
 ECUADOR              856    856   870    0   -10   -459  1765 (2/11/16)
 EL SALVADOR          515    495   477   20    41   -125  840 (2/11/16)
 GUATEMALA            241    237   243    4    1    -61   385 (2/11/16)
 JAMAICA              377    375   380    2    -4   -72   519 (2/11/15)
 MEXICO               172    174   179   -2    0    -22   278 (2/11/16)
 PANAMA               146    146   148    0    -2   -60   272 (2/11/16)
 PERU                 137    136   138    1    -7   -94   291 (2/10/16)
 TRINIDAD & TOBAGO    206    210   215   -4   -15   108   173 (1/15/15)
 URUGUAY              212    212   217    0    -1   -56   344 (2/11/16)
 VENEZUELA            1986  1992   2013  -6   -272  -806  3713 (2/12/16)
    Source: Bank of America Merrill Lynch Master Index
    
    SPREAD TRENDS:
    One-day change mixed
    Ten-day trend 10 out of 17 sovereigns flat to tighter
    YTD: Chile tighter by 22bp
    YTD: Guatemala tighter by 61bp
    YTD: Trinidad & Tobago wider by 108bp
            
    PIPELINE:  
    LATAM Airlines Group S.A. ("LATAM", NYSE: LFL), a Chile-based airline group
mandated Citi and J.P. Morgan as global coordinators and joint bookrunners and
BNPP, BofAML, Deutsche Bank, and Santander as joint bookrunners to arrange a
series of fixed income investor meetings in Chile, Europe, and the US commencing
on October 12 2016. A USD-denominated benchmark 144A / Reg S 7-year offering is
expected to follow, subject to market conditions.
    Citigroup Global Markets Inc., as offeror, launched on October 5 a tender
offer for up to US$462.5m, of TAM's outstanding US$500m 8.375% notes due 2021
and US$300m 7.375% notes due 2017, in order of priority.
    Meeting schedule as follows: Wednesday, October 12 - Santiago, Friday,
October 14 - Los Angeles, Monday, October 17 - London, Tuesday, October 18 -
Boston, Wednesday, October 19 - New York. 
    
    Panama's Global Bank is preparing to issue a possible senior unsecured note.
The issuer was in Boston on Wednesday and will head to Los Angeles on October 6.
Ratings are Ba1/BBB-/BBB-. 
    The deal is being done in conjunction with a tender for its outstanding 2017
covered bonds. Citigroup, Deutsche Bank and JP Morgan have been mandated as
leads, with UBS coming in as co-manager.
    
    Mexican development bank Nafin wrapped up roadshows last week, as it looks
to market a potential US dollar bond through Bank of America Merrill Lynch and
HSBC. The issuer is rated A3/BBB+/BBB+. 
          
    Bermuda started fixed-income investor meetings this week as it markets a
potential bond trade to finance a tender for existing bonds.
    The borrower is visiting accounts in London, New York, Boston and Los
Angeles all this week, and wrapping up with conference calls on October 10. 
    The deal is being done in conjunction with a tender for up to US$150m tender
for its outstanding 2020 and 2023 notes. HSBC is leading the transaction. 
    
    The Republic of Suriname (B1/B+/B+) is roadshowing this week and next to
market a potential debut 144A/RegS bond offering.
    The borrower will be in Trinidad and Tobago on Thursday and in Jamaica on
Friday. Next week, it will head to Switzerland on October 10, London on October
11, Boston on October 12, the mid Atlantic coast on October 13, the West Coast
on October 14. Roadshows will finish in New York on October 17 and 18.
    Oppenheimer and Scotiabank have been mandated to organize the meetings
    
    Mexican state-owned utility Comision Federal de Electricidad (CFE) is
marketing possible US$1bn 10-year bond. 
    The borrower finished roadshows in New York and Boston on Wednesday. Ratings
are Baa1/BBB+/BBB+. BBVA, Bank of America Merrill Lynch and Citigroup have been
mandated to arrange the meetings. 

 (Reporting by Mike Gambale; Editing by Shankar Ramakrishnan)