July 12, 2016 / 8:27 PM / in 2 years

LATAM CLOSE-No deals price in LatAm primary market

* Celulosa Argentina to price new bond Wed

* Pemex to tap Samurai market with JBIC deal

* Argentina’s Albanesi to market debut bond

* Cosan taps 2027 for another US$150m

By Mike Gambale

NEW YORK, July 12 (IFR) - No deals priced in the LatAm primary market on Tuesday.

COSAN (Deal priced Monday evening)

Brazilian conglomerate Cosan announced a tap of its 7% 2027 bond. Ratings are Ba3/BB/BB+. Bradesco, Citigroup, HSBC, Itau, Morgan Stanley and Santander are acting as leads for the senior unsecured notes. 144a/RegS w/o reg rights. UOP: GCP.

IPT: 7.25% area

LAUNCH: US$150m tap of 7% 2027 at 7.125%

PRICED: US$150m tap of its 7% 2027. Reoffer price US$99.067; 7.125% YTW. Call schedule: 2022 at 103.5, 2023 at 102.333, 2024 at 101.167, 2025 and at par. First pay 1/20/2017. Settlement date 7/18/2016. Total amount outstanding US$650m.


Mexican state-owned petroleum company Petroleos Mexicanos (Pemex) is marketing a 10-year Samurai at 0.53%-0.57%. Pemex, rated Baa3/BBB+/BBB+, will receive a guarantee for the notes from the Japan Bank for International Cooperation. Pricing is expected as early as this Friday. Mitsubishi UFJ Morgan Stanley, Mizuho and SMBC Nikko are joint lead managers.

Celulosa Argentina is expected to price a seven-year non-call four bond on Wednesday after reducing the size to US$150m and sticking to initial talk of 10% area, sources told IFR on Tuesday.

The pulp and paper company had been expected to price on Tuesday after marketing an up to US$200m deal with initial price thoughts of 10% area. Celulosa Argentina’s total debt to adjusted Ebitda stood at 3.8x as of February 29 2016, according to Fitch.

Proceeds from the bond sale are going toward debt refinancing, working capital and general corporate purposes. Citigroup and Credit Suisse are acting as leads on the deal, which is rated B3/B by Moody’s and Fitch.

Argentine electric utility company Albanesi has picked banks to meet investors as it seeks to market a possible 144A/RegS US dollar bond.

Fixed-income investor meetings start on Wednesday through global coordinators and joint bookrunners Credit Suisse and JP Morgan. UBS has also been selected as a joint bookrunner. Expected ratings are B3/B+ by Moody’s and Fitch.

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 finished on Tuesday in New York and Santiago.

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. Meetings took place in New York and Boston on Tuesday and will conclude in New York on Wednesday.

The Province of Chubut has hired Bank of America Merrill Lynch and BNP Paribas to arrange a series of investor meetings ahead of a potential US dollar-denominated bond sale.

The borrower will visit investors in Europe and the US and wrap up meetings on July 14. It is seeking to raise US$500m through amortizing notes due 2026, according to Moody’s, which assigned a B3 rating to the issue earlier this month. 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.

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.

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% 2017ss. 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 had been marketing a US dollar bond, which is expected to be rated BB/BB-.

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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