June 9, 2016 / 9:22 PM / 2 years ago

LATAM CLOSE-Three issuers tap LatAm primary

* Bolivia eyeing US$1bn bond: minister

* Cosan prints US$500m long 10-year

* Brazil’s Eldorado prices five-year

* Mexico prints its largest non-guaranteed Samurai

By Mike Gambale and Paul Kilby

NEW YORK, June 9 (IFR) - Below is a recap of primary issuance activity in the LatAm market on Thursday:

Number of deals priced: 3

Total issuance: 1 for JPY135bn, 2 for US$850m


Brazilian conglomerate Cosan is approaching investors with a new US dollar-denominated January 2027 bond ahead of expected pricing on Thursday. Bank of America Merrill Lynch, Bradesco, Citigroup, HSBC, Itau and Santander are acting as leads on the 144a/RegS issue. The company is involved in bioethanol, sugar, energy and foods. Expected ratings are Ba3/BB/BB+ (negative/stable/stable).

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.

IPTs: Mid 7%a

GUIDANCE: 10NC5 at 7.375% (+/-12.5bp)

LAUNCH: US$500m 10NC5 at 7.25%

PRICED: US$500m 10NC5: 98.163; 7.00%C; 7.25%Y; T+557.2bp - Final maturity: January 20 2027; Settlement June 20 2016; Book US$1.1bn


Brazilian pulp company Eldorado International Finance is out with a US dollar 5NC3 ahead of expected pricing on Thursday. 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.

IPTs high 8% area

GUIDANCE: 8.875% area (+/- 12.5bp)

LAUNCH: US$350m at 8.875%

PRICED: US$350m 5NC3; 99.008; 8.625%C; 8.875%Y


The Government of the United Mexican States (A3/BBB+/BBB+) has raised ¥135bn (US$1.3bn) from its Samurai offering, after adding two tranches during marketing.

A ¥45.9bn 3-year tranche priced at par to yield 0.4%. This was the tight end of the most recent guidance of 0.40%-0.45%, which was revised from 0.40%-0.50% initially.

A ¥50.9bn 5-year tranche priced at 0.7%, from revised guidance of 0.70%-0.75% and earlier indications of 0.70%-0.80%. The issuer also added 10 and 20-year tranches.

The ¥16.3bn 10-year priced at 1.09% and the ¥21.9bn 20-year priced at 2.4%. Daiwa, Mitsubishi UFJ Morgan Stanley and Nomura were joint lead managers. Settlement is on June 16.


Energy company ContourGlobal Power Holdings (BB-/BB-) is out with guidance of 5.25% area on a 550m senior secured 5NC2 trade ahead of pricing Friday through Goldman Sachs. 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.

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

The company will be in New York on Friday. The following week, it meet investors in London on June 13, in 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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