20 de julio de 2015 / 20:04 / en 2 años

LATAM WRAP-Cosan to test appetite for Brazilian high-yield

NEW YORK, July 20 (IFR) - Brazil’s Cosan stole the limelight in Latin American primary markets on Monday with plans to raise new funds seven months after pulling the plug on another bond deal.

The sale will be a key test for junk-rated Brazilian issuers, which have largely been shut out of the capital markets by the corruption scandal at state-run oil company Petrobras.

Only beef producer JBS and telecoms company Oi have tapped the international markets since the scandal hit last year, and both were seen as only limited attempts to reopen the markets for Brazilian high-yield paper.

“This is the first true Brazilian (high-yield) dollar deal of the year,” said a syndicate banker not involved in the trade.

“Being sub-investment grade and from Brazil, they will have to pay up a decent amount in new issue concession,” the banker told IFR.

“But on the other hand there hasn’t been a lot of supply to choose from.”

Cosan - a sugar, foods and energy conglomerate - tried to sell an international bond in December, as it sought to raise funds to finance a buy-back of its outstanding perpetual notes.

But investor sentiment towards Brazil soured as the scandal unfolded, and the company had to pull the plug on the deal.

Cosan has hired Bank of America Merrill Lynch, Bradesco BBI, Itau BBA, Morgan Stanley and Santander to manage the new bond sale.

It is meeting investors in Boston and Los Angeles on Tuesday and New York and London Wednesday.


Brazilian refractory company Magnesita has announced plans to buy back as much as all of its outstanding 7.875% senior notes due 2020 and to modify their terms and remove all restricting covenants.

America Movil (A2/A-/A) and Telesites (expected NR/BBB-/BBB-) have wrapped up investor meetings via Citigroup, Inbursa, BBVA and Santander. The meetings were intended to discuss the new Operadora de Sites Mexicanos business and gauge interest for 144A/Reg S deals in Mexican pesos and/or USD.

Banco Santander Chile (Aa3/A/A+) has wrapped up meetings via Deutsche Bank and Santander to discuss opportunities in the domestic Chilean markets.

Jamaica (Caa2/B/B-) has wrapped up investor meetings 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; Editing by Marc Carnegie)

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