July 7, 2016 / 9:42 PM / 2 years ago

LATAM CLOSE-Three Latam issuers raise US$3.85bn

* Transelec over eight times covered

* Transelec 12-yr bond 40bp tighter vs IPTs

* Moody’s assigns B3 to Argentina’s Chubut

By Mike Gambale

NEW YORK, July 7 (IFR) - Below is a recap of primary issuance activity in the LatAm market on Thursday:

Number of deals priced: 3

Total issuance so far: US$3.85bn


Transelec S.A., Baa1/BBB/BBB, announced a US$350m (no grow) 144A/RegS long 12-year (1/12/2029) senior unsecured note. The active bookrunners are Citigroup, JPMorgan, Scotiabank and Santander. UOP: repayment of debt and GCP. Settle: T+3.

IPT: T+300bp area

PRICE GUIDANCE: T+270bp area (+/- 10bp)

LAUNCH: US$350m at T+260bp

PRICED: US$350m 3.875% cpn 12yr (1/12/2029). At 98.857, yld 3.992%. T+260bp.

BOOK: US$3bn


Petrobras Global Finance B.V.. expected ratings B3/B+/BB, announced a US$ benchmark 2-part taps for its 8.375% 5/23/21 and 8.75% 5/23/26 notes via BB SEC/BAML/JPM/SANT. SEC-reg, senior unsecured notes. Settlement date T+4.

IPTs: 5-year 8.125% area, 10-year 9% area.

PRICE GUIDANCE: Tap 2021s 7.875% area (+/-0.125%), Tap 2026s 8.75-8.875%.

LAUNCH: US$3bn 2-part

- US$1.75bn 8.375% 2021s at 7.875% yield.

- US$1.25bn 8.750% 2026s at 8.750% yield.

PRICED: US$3bn 2-part.

- US$1.75bn. Cpn 8.375%. Due 5/23/21. Reoffer price US$101.971. Yld 8.75%. New amount outstanding US$6.75bn

- US$1.25bn. Cpn 8.750%. Due 5/23/26. Reoffer price US$99.982. Yld 8.75%. New amount outstanding US$3bn


Bahia Sul Holdings GmbH, rated Nr/BB+/BB+, announced a US$ benchmark 10-year senior unsecured notes via global coordinators JPM/SANT. Joint-bookrunners are BBSEC/BRAD/BTG/ITAU. 144a/RegS. UOP: Financing and refinancing of eligible green projects.

IPT: Low 6.00%

PRICE GUIDANCE: 6.00% area (+/-12.5bp)

PRICED: US$500m. Cpn 5.75%. Due 7/14/26. Ip US$99.065. Yld 5.875%. MWC T+50bp.Settlement date 7/14/16.


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)

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