June 29, 2016 / 9:52 PM / in 2 years

LATAM CLOSE-Four issuers raise US$1.4bn in LatAm primary

* LatAm primary moves into high-gear amid risk-on bid

* Argentina YPF to tap foreign appetite for local debt

* Chile’s Transelec joins growing pipeline

By Mike Gambale and Paul Kilby

NEW YORK, June 29 (IFR) - Below is a recap of primary issuance activity in the LatAm market on Wednesday:

Number of deals priced: 4

Total issuance: US$1.4bn


The Dominican Republic announced a US$500m will-not-grow tap of its 6.875% 2026 bond. With this tap, the oustanding size grows to US$1.5bn. Leads were Citigroup and JP Morgan. ratings are B1/BB-/B+.

IPTs 5.875% area

GUIDANCE: Tap of 6.875% 2026 at 5.60%-5.65%

LAUNCH: US$500m tap of 6.875% 2026 at 5.60%

PRICED: US$500m tap of 6.875% 2050026: 109.335; 5.60%Y - Final maturity January 29 2026. Settlement on July 7 2016.


Brazilian beef name Marfrig announced a tap of its 8% 2023 bonds. Proceeds are going to repay debt, including its 2016s and 2017s. The senior unsecured notes are being sold under a 144A/RegS format and are rated B2/B+/B+. BB Securities, Bradesco, HSBC, Morgan Stanley and Santander are acting as leads.

IPTs 7.875% area

GUIDANCE: Marfrig US$250m tap of 8% 2023 at 7.75% area

LAUNCH: US$250m at 7.625%

PRICED: US$250m tap of 8% 2023: 101.505; 7.625%YTW


Argentine confectionery company Arcor announced 7NC4. Proceeds are being used to refinance debt including its 7.25% 2017s. The senior unsecured 144A/RegS bonds will be listed in Luxembourg and governed by New York law. Itau, JP Morgan and Santander are acting as leads. Ratings are B1/B+ by Moody’s and Fitch.

IPTs mid 6%

GUIDANCE: 7NC4 at 6.25% (+/-12.5bp)

LAUNCH: US$350m 7NC4 at 6.00%

PRICED: US$350m 7NC4: par; 6%


Argentina’s Province of Salta announced an up to US$350m 2024 bond. The bond has a seven-year average life and amortizes equally in 2022, 2023 and 2024. The senior unsecured bond is expected to be rated B-/B. Citigroup and Deutsche Bank are acting as leads.

IPTs 9.25% area

GUIDANCE: Up to US$350m 2024 at 9.125% area

LAUNCH: US$300m 2024 bond at 9.125%

PRICED: US$300m 2024 bond at 9.125% at par. S/D 7/7/16.

BOOK: around US$800m.


Argentina infrastructure company CLISA is set to kick off roadshows this week ahead of bond offering and liability management exercise.

The company will visit accounts in Chile, Switzerland, London, Boston, New York and Los Angeles between July 1 and July 13.

The bond is being done in conjunction with a cash tender for US$87.106m of outstanding 11.50% notes due 2019.

Holders are being offered a price of 110.00 if they tender by the early bird date of July 13. Thereafter but before the expiration date of July 28, the price drops to 106.50.

BCP and Santander are acting as dealer managers on the tender and leads on the bond sale.

Chile’s Transelec, rated Baa1/BBB/BBB, will start roadshows this week as it looks to market a potential 144A/RegS bond.

The borrower will meet investors in Santiago on Thursday and next week will head to London on Monday, Los Angeles on Tuesday and Boston and New York on Wednesday. Transelec is Chile’s largest power transmission company by kilometers of lines. Citigroup, JP Morgan, Santander and Scotiabank are acting as leads.

Argentine oil company YPF has announced a peso-linked, USD-denominated 2020 bond, with initial price thoughts set at Badlar plus 400bp.

The senior unsecured notes are being marketed under a 144A/Reg S format with no registration rights. It will be listed in Luxembourg and governed by New York law. Expected pricing is on Thursday. Expected ratings are B3/B by Moody’s and Fitch. BBVA and Santander are acting as leads.

Petrobras Argentina is preparing an up to US$500m bond sale to fund a tender for all of its US$300m of outstanding 5.875% 2017s, according to a filing with local regulators. The borrower is seeking to raise 10-year money and has mandated Citigroup and Deutsche on the deal. The announcement comes after Pampa Energia agreed earlier this year to purchase a 67.2% stake in Petrobras Argentina for US$892m.

Argentine power company Pampa Energia will also hire four banks to lead a new international bond sale that will refinance debt taken out to fund its acquisition of Petrobras’s Argentine assets. The company plans to hire Deutsche Bank, Citigroup, ICBC and Banco Galicia to lead the bond sale, which will refinance a US$700m bridge loan extended by the same lenders, Pampa chairman Marcelo Mindlin told IFR.

Mexican real-estate developer Grupo GICSA has finished investor meetings through JP Morgan and Santander. The company has been marketing a US dollar bond, which is expected to be rated BB/BB-.

Celulosa Argentina is eyeing an up to US$250m seven-year bond sale, according to a filing with local regulators. The pulp and paper company has been in discussions with bankers from Citigroup and Credit Suisse about financing options, the company said.

Bolivia is hoping to sell an up to US$1bn 10-year bond in the coming months, according to Economy Minister Luis Arce Catacora. Proceeds would go mainly towards investment in healthcare, specifically hospitals. Bolivia is rated BB by S&P and Fitch and one notch lower at Ba3 by Moody’s. (Reporting by Mike Gambale; editing by Shankar Ramakrishnan)

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