9 de julio de 2015 / 20:55 / en 2 años

LATAM WRAP-AES Gener brings tight 10-year; PacRu bonds drop

NEW YORK, July 9 (IFR) - Chile’s AES Gener seized on improved market sentiment after an apparent stabilization of Chinese equities overnight to push ahead with a new 10-year bond Thursday.

The power utility took a prudent approach by setting initial price thoughts on the US$425m issue at 300bp area over US Treasuries, but was later able to tighten pricing by an impressive 25bp after receiving US$1.5bn in orders.

At the initial talk level, the deal was seen coming some 30bp back of a 2025 recently issued by Empresa Electrica Guacolda, which is majority owned by AES Gener. Those notes were spotted trading at a G-spread of around 270bp on Thursday morning.

“It started off pretty cheap, but they came right on top of Guacolda, which is a pretty decent outcome,” said a syndicate official not involved in the trade. “A lot of deals have to start cheap these days and there isn’t a lot of price leverage.”

In secondary markets, bonds of Colombia-focused oil company Pacific Rubiales failed to recover from their morning slump triggered by the announcement that Mexican conglomerate Alfa and investment firm Harbour Energy have dropped plans to take over the company.

Pacific Rubiales’s 2019 and 2021 were last quoted at 71.00-72.50 and 71.50-72.50 having dropped as much as 11 points from their Wednesday’s close, according to a broker in Miami.

Its 2023s and 2025s were also ending the session close to intraday lows, last spotted at 63.75-64.50 and 63.0-65.0 respectively, or around nine points lower on the day.

“We are still seeing some sellers and maybe we will see more tomorrow,” said the broker in the afternoon.


America Movil (A2/A-/A) and Telesites (expected NR/BBB-/BBB-) mandated Citigroup, Indursa, BBVA and Santander to arrange fixed income investor meetings between June 29 and July 9.

The meetings will discuss the new Operadora de Sites Mexicanos business and gauge interest in new 144A/Reg S deals in Mexican pesos and/or USD.

Banco Santander Chile (Aa3/A/A+) has mandated Deutsche Bank and Santander to arrange global fixed-income investor meetings to discuss opportunities in the domestic Chilean markets. The meetings will wrap up on Friday in Los Angeles.

Jamaica, rated Caa2/B/B-, has wrapped up roadshows via Citigroup. The meetings were described as a non-deal roadshow, but markets have been expecting the sovereign to raise funding to retire a PetroCaribe loan owed to Venezuela.

Reporting by Davide Scigliuzzo

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