July 14, 2016 / 8:57 PM / 2 years ago

LATAM CLOSE-Three issuers raise US$950m in LatAm primary

* Argentina’s first Basel III compliant T2 bond priced

* Petrobras Argentina draws a crowd

* Usiminas nears debt deal with banks

By Mike Gambale

NEW YORK, July 14 (IFR) - Below is a recap of primary issuance activity in the LatAm primary market on Thursday:

Number of deals priced: 3

Total issuance: US$950m


Petrobras Argentina announced a US$500m 7NC4 bond. Citigroup and Deutsche Bank are acting as lead managers on the senior unsecured bond. The 144A/RegS security will be listed in Luxembourg and governed by New York law. Expected ratings are B3/B- by Moody’s and S&P. Proceeds are being used to redeem series 5 notes and for capex.

IPTs 8% area

GUIDANCE: US$500m 7NC4 7.75% (+/- 1/8)

LAUNCH: US$500m 7NC4 at 7.50%

PRICED: US$500m 7NC4: 99.329; 7.375%C; 7.50%Y


Argentina’s Banco de Galicia y Buenos Aires announced a US-dollar-denominated Tier 2 10NC5 bond. The bank is looking to raise US$250m through the Basel III compliant bond. Deutsche and JP Morgan have been mandated as joint bookrunners, with Standard Chartered coming in as lead manager. The issuer rating is B3/B-, while the expected issue rating is Caa1/CCC.

IPTs: Very high 8%s

GUIDANCE: T2 10NC5 at 8.625% area (+/- 1/8)

LAUNCH: US$250m T2 10NC5 at 8.25%

PRICED: US$250m T2 10NC5: par; 8.25%Y


Compania Latinoamericana de Infraestructura & Servicios SA (CLISA), expected ratings Nr/B-/B-, announced a US$300m 7-year nc4 senior unsecured note offering via BCP/SANT. 144a/RegS. UOP: To repay existing debt.

IPT: High 9%

GUIDANCE: USD 7NC4 bond at 9.75%

LAUNCH: US$200m 7NC4 at 9.75%

PRICED: US$200m 7NC4; 98.753; 9.5%C; 9.75%Y


Mexican state-owned petroleum company Pemex is likely to price a ¥80bn (US$771m) Samurai on Friday. Final guidance for the 10-year offering was set at 0.54%, after initially marketing at 0.53%-0.57%.

Pemex, rated Baa3/BBB+/BBB+, will receive a guarantee for the notes from the Japan Bank for International Cooperation. Mitsubishi UFJ Morgan Stanley, Mizuho and SMBC Nikko are joint lead managers.

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 started 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.

The Province of Chubut was scheduled to wrap up investors meetings on Thursday after mandating Bank of America Merrill Lynch and BNP Paribas ahead of a potential US dollar-denominated bond sale.

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.

Argentine power company Pampa Energia plans to 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.

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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