June 8, 2016 / 9:32 PM / 2 years ago

LATAM CLOSE-Five issuers tap LatAm primary market

* LatAm primary on course for busiest week of 2016

* Issuers raise close to US$3bn on Wednesday

* Vale’s new five-year inches higher in secondary

* Venezuela crisis opportunity for investors

By Mike Gambale and Paul Kilby

NEW YORK, June 8 (IFR) - Below is a recap of primary issuance activity in the LatAm market on Wednesday:

Number of deals priced: 5

Total issuance: E400m, US$2bn


Mexican cement company CEMEX has announced new 8NC4 senior secured bond through BNP Paribas, Credit Agricole and JP Morgan.

IPTs: 5%-5.25%

GUIDANCE: 8-year bond 4.875% area

LAUNCH: EUR400m 8-year at 4.625%Y

PRICED: EUR400m 8-year: par; 4.625%Y - settlement June 14 2016; final maturity June 15 2024


Ecopetrol SA, Baa3/BBB/BBB, announced a US$500m SEC registered tap of the 5.875% 9/18/2023. Bank of America and HSBC are the joint books. UOP: GCP, including capex. Settle: T+5.

IPT: 5.80% area

GUIDANCE: 5.65% (+/- 5bp)

LAUNCH: US$500m at 5.60%

PRICED: US$500m tap 5.875% cpn 9/18/2023. At 101.612, yld 5.60%.

BOOK: US$1.7bn

NIC: 5bp-10bp


5.875% September 18, 2023 at a yield of 5.50-5.55%


Fibra Uno (FUNOTR), Baa2/BBB, announced a US$ 144A/RegS w/o reg rights 2-part senior unsecured note offering that includes a tap of the 5.25% 1/30/26s and a tap of the 6.95% 1/30/44s. The active bookrunners are BBVA, Deutsche Bank, Goldman Sachs, with passive bookrunners BAML, CS, HSBC and ITAU. The notes contain a 3mo par call on 10yr tap and a 6mo par call on the 30yr tap. UOP: General corporate purposes, which may include, from time to time as opportunities arise, the acquisition of additional properties and the repayment of indebtedness. Biz: Mexico’s largest REIT. Settle: T+3.

IPTs: 5.25% 2026s T+355bp area (5.25% area), 6.95% 2044s T+440bp area (6.92% area)

PRICE GUIDANCE: 5.25% 2026 T+350bp area (+/- 5bp), 6.95% 2044s T+435bp (#)

LAUNCH: US$500m 2-part. US$200m 5.25% 2026 at T+345bp, US$300m 6.95% 2044 at T+435bp

PRICED: US$500m 2-part.

- US$200m tap of 5.25% 1/30/2026. At 100.715, yld 5.152%. T+345bp.

- US$300m tap of 6.95% 1/20/2044. At 101.041, yld 6.864%. T+435bp.

BOOK: US$1.5bn total; 10yr US$700m, 28yr US$800m

NIC: 10-year: 9bp, 2044s: 20bp


5.25% 2026s at G+336bp

6.95% 2044s at T+415bp


Argentina’s Cablevision SA announced an up to US$500m 5NC3 ahead of expected pricing on Wednesday. Deutsche Bank, Itau and JP Morgan are acting as leads on the deal, which is expected to be rated B3/B+. Proceeds will be used to refinance existing debt and for general corporate purposes. The pay TV and internet service provider is majority-owned by media conglomerate Grupo Clarin.

IPTs: Very high 6%

GUIDANCE: 5NC3 at 6.625% area (+/- 1/8)

LAUNCH: US$500m 5NC3 at 6.5%

PRICED: US$500m 5NC3: par; 6.5% - settlement June 15 2016; June 15 2021

BOOK: US$3.3bn


The Province of Buenos Aires has announced a new three and 10-year bond sale on Wednesday, through leads are Citigroup, HSBC and Santander.

IPTs 3-year low 6%, 10-year low 8%.

GUIDANCE: 3-year at 5.75% (+/- 1/8); 10-year at 7.875% (+/-1/8).

LAUNCH: US$500m 3-year at 5.75%; US$500m 10-year at 7.875% - Books US$2.75bn on five-year, US$1.75bn on 10-year.

PRICED: Province of BA US$500m 3-yr; par; 5.75%Y; US$500m 10-yr; par; 7.875%Y

BOOK: US$4.8bn total; 3-year US$2.9bn, 10-year US$1.9bn


Brazilian conglomerate Cosan will hold a one-day roadshow this week as it seeks to market a 144A/RegS bond deal after mandating Bank of America Merrill Lynch, Bradesco, Citigroup, HSBC, Itau and Santander.

The borrower was to meet investors on June 8 in New York, London, Boston and Los Angeles. The company, which is involved in bioethanol, sugar, energy and foods, is rated Ba2/BB/BB+ with negative outlooks from all three major rating agencies.

The deal is being done in conjunction with a consent solicitation and tender for any and all of its US$500m of 5% 2023s and its BRL850m (US$243m) of 9.5% 2018s.

Holders who tender by the early bird date of June 17 will receive a tender price of 96.00 on the 2023s and 95.00 on the 2018s. Thereafter but before expiration of July 1, those prices dropped to 93.00 and 92.00 respectively.

Energy company ContourGlobal Power Holdings (BB-/BB-) has mandated Goldman Sachs for a 550m senior secured 5NC2 trade.

Roadshows took place in London on Tuesday and Paris and Frankfurt on Wednesday, moving to Milan on Thursday.

The company has also launched a cash tender on its 7.125% senior secured 2019s. ContourGlobal is offering US$1,037.51 for every US$1,000 tendered.

The Government of the United Mexican States (A3/BBB+/BBB+) have revised guidance on its latest Samurai offering.

The sovereign has narrowed talk on the three-year tranche to 0.40%-0.45% from 0.40%-0.50%, while tightening the five-year notes to a range of 0.70%-0.75% from 0.70%-0.80%.

Daiwa, Mitsubishi UFJ Morgan Stanley and Nomura are joint lead managers. The transaction is expected to price as early as Thursday.

Mexico’s last Samurai was a ¥60bn (US$592m) print in July 2014 that included its first 20-year tranche.

Brazilian pulp and paper company Eldorado has mandated Bank of America Merrill Lynch, Credit Suisse, BB Securities and Santander to market a USD 144/Reg S bond to international investors.

The borrower wrapped up roadshows in Boston today. The senior unsecured bond is expected to be rated B+/B+ and is being sold under a 144A/RegS format without registration rights. Proceeds are being used to repay existing debt and for general corporate purposes.

The deal will be listed in Singapore and governed by New York law. Bank of America Merrill Lynch, Credit Suisse, BB Securities and Santander are acting as joint bookrunners.

Goldman Sachs is on the road marketing a US$500m financing package for Colombian road project Costera.

The borrower is looking at dollar bonds as well as inflation-linked peso bonds and loans, according to Fitch, which assigned a BBB- rating to the notes.

Mexican real-estate developer Grupo GICSA kicked off international roadshows on Tuesday to market a US dollar bond through JP Morgan and Santander.

The company was in Santiago on Tuesday; is in Los Angeles on Wednesday and Thursday; heads to New York on Friday. It will be in London on June 13, Boston on June 14 and in New York on June 15. Expected ratings are BB/BB-.

Banks are marketing a 15-year bond of around US$500m in size to finance KKR’s purchase of Pemex assets after failing to attract sufficient interest in a previous loan deal, sources told IFR.

Morgan Stanley is left-lead on the bond, which could price as soon as next week, with Credit Agricole, Mizuho and SMBC also participating as bookrunners, the sources said.

The bond is expected to fill the gap left over from a multi-tranche loan that had been expected to be US$1.35bn in size, but was reduced to US$500m amid push-back over exposure to Pemex and the broader oil and gas sector. (Reporting by Mike Gambale and Paul Kilby; Editing by Marc Carnegie)

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