July 6, 2016 / 7:57 PM / 2 years ago

LATAM CLOSE-No deals price in LatAm primary market

* Banco Galicia mandates US dollar Tier 2 bond
    * Peru asks tribunal to dismiss US$1.6bn Gramercy claim
    * Credito Real eyes new bond to buy back 2019s

    By Mike Gambale
    NEW YORK, July 6 (IFR) - No deals priced in the LatAm primary market on
    Here is a snapshot of LatAm sovereign credit spreads: 
     SOVEREIGN      7/5   7/1   6/30  1D   10D   YTD     2015/16 HIGH
 ARGENTINA          496   488   488    8    14    -           -
 BARBADOS           700   690   692   10    51    96    659 (2/11/16)
 BRAZIL             326   321   324    5   -25   -160   542 (2/11/16)
 CHILE              105    96   108    9    6     19    143 (2/11/16)
 COLOMBIA           238   239   241   -1   -19   -51    412 (2/11/16)
 COSTA RICA         446   448   452   -2   -16   -71    587 (2/11/16)
 DOMINICAN REP      407   401   409    6   -13    -8    542 (2/11/16)
 ECUADOR            939   950   949   -11   10   -376   1765 (2/11/16)
 EL SALVADOR        655   660   663   -5   -13    15    840 (2/11/16)
 GUATEMALA          300   292   296    8    16    -2    385 (2/11/16)
 JAMAICA            470   462   468    8    31    21    519 (2/11/15)
 MEXICO             185   184   185    1    -9    -9    278 (2/11/16)
 PANAMA             193   192   193    1   -11   -13    272 (2/11/16)
 PERU               189   189   191    0    -5   -42    291 (2/10/16)
 TRINIDAD & TOBAGO  241   233   232    8    26   143    173 (1/15/15)
 URUGUAY            253   245   256    8    -1   -15    344 (2/11/16)
 VENEZUELA          2707  2706  2704   1   -189  -85    3713 (2/12/16)
    Source: Bank of America Merrill Lynch Master Index
    One-day change shows most LatAm sovereigns wider
    Ten-day trend 10 out of 17 sovereigns tighter
    YTD: Trinidad & Tobago wider by 143bp
    Mexico's consumer finance lender Credito Real (BB+/BB+) has hired Barclays,
Deutsche Bank and Morgan Stanley to arrange a series of meetings with
fixed-income investors in the US, Europe and Latin America ahead of a potential
144A/Reg S US dollar-denominated bond issue. The meetings will take place in
London on July 8, Boston, Los Angeles and Lima on July 11, and New York and
Santiago on July 12.
    Proceeds from the sale will help finance a tender on Credito Real's 7.5%
2019s, on which the company has US$425m outstanding, according to Thomson
Reuters data.
    Argentina's Banco de Galicia y Buenos Aires has hired Deutsche Bank and JP
Morgan as joint bookrunners and Standard Chartered as lead manager to arrange a
series of meetings with fixed-income investors ahead of a potential 144A/Reg S
US dollar-denominated Basel III compliant Tier 2 bond issue.
    The lender is looking to raise up to US$300m through the 10-year bond sale,
according to Moody's.
    The meetings will take place in London and the West Coast on July 11, New
York and Boston on July 12 and New York on July 13.
    Argentina's Province of Chubut is looking to raise US$500m through
amortizing notes due 2026, according to Moody's, which has assigned a B3 rating
to the issue. 
    The notes will be secured by a percentage of hydrocarbon royalties to be
paid by the Argentine branch of Pan American Energy to the Province, the rating
agency said.
    The notes, which will be issued under New York law, will start amortizing in
24 quarterly instalments after a grace period of four years. The Province has
the legal capacity to increase or reopen the issue size up to US$650m.
    Chubut plans to use half of the proceeds from the sale to refinance existing
debt and the remainder to fund infrastructure work.
    Argentina infrastructure company CLISA is meeting investors ahead of a bond
offering and liability management exercise. 
    The company is scheduled to 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.
    BCP and Santander are acting as dealer managers on the tender and leads on
the bond sale.

    Chile's Transelec, rated Baa1/BBB/BBB, has wrapped up roadshows this week
ahead of a potential 144A/RegS bond.
    Transelec is Chile's largest power transmission company by kilometers of
lines. Citigroup, JP Morgan, Santander and Scotiabank 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. Petrobras Argentina's is rated B3 by Moody's.
    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 readying a US$200m seven-year seniour unsecured bond
sale. Moody's assigned a B3 rating to proposed notes. 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)
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below