September 8, 2016 / 8:57 PM / 2 years ago

LATAM CLOSE-One deal prices for US$1bn in LatAm primary market

* Minerva kicks off post Labor Day issuance

* Group of Oi bondholders reject in-court plan

* Uncertainty over Brazil Samarco mine hinders restructuring

By Mike Gambale and Paul Kilby

NEW YORK, Sept 8 (IFR) - Below is a recap of primary issuance activity in the LatAm market on Thursday:

Number of deals priced: 1

Total issuance: US$1bn


Brazilian beef company Minerva is out with a US dollar benchmark 10NC5 to fund a tender for its outstanding 7.75% 2023s. Banco Bradesco, Bank of America Merrill Lynch, HSBC, Itau and JP Morgan are leads on the senior unsecured bond, which is expected to be rated BB-/BB- by S&P and Fitch. The listing will be on the Singapore Stock Exchange, while the bond will be governed by New York law.

IPTs 7% area

GUIDANCE: Minerva 10NC5 at 6.75% (+/- 1/8)

LAUNCH: Minerva US$1bn 10NC5 at 6.625%

PRICED: US$1bn 10NC5: 99.096; 6.5%C; 6.625%Y - Settlement Sept 20 2016, Maturity: Sept 20 2026

BOOK: About US$3.5bn


Mexico’s Banco Inbursa will start engaging investors this week as it seeks to market a new US dollar 10-year senior unsecured bond, according to market sources.

The borrower will hold investor calls on Thursday in Mexico and will then meet investors in London and Boston on Friday. Roadshows finish on September 12 in New York and Los Angeles.

Expected ratings are BBB+/BBB+. Bank of America Merrill Lynch, Citigroup and Credit Suisse have been mandated as leads.

JSL, a logistics services provider operating in Brazil, will start roadshows this week to market a possible 144A/Reg S senior unsecured US dollar bond.

The borrower visited accounts in Singapore on Thursday, and will head to London and Hong Kong on Friday. Next week it goes to Boston and Los Angeles on September 12 and New York on September 13.

BB Securities, Bradesco BBI, Morgan Stanley and Santander have been mandated on the deal. Ratings are BB/BB by S&P and Fitch.

Bankers are set to start marketing this week a Green bond to help fund the construction and operation of Mexico City’s new international airport.

The bond, which is being issued through a special purpose trust, is expected to be the first of up to US$6bn of such trades, allowing the borrower to create an extensive curve over time.

Bondholders will be paid through cash flows collected from passenger charges from the current airport and the new Mexico City International Airport (NAICM) that will start operations in 2020.

The issuer will visit accounts in Hong Kong on Friday and will then head to Singapore on September 12, to London on September 13 and 14, Boston on September 15 and Los Angeles on September 16. Roadshows will wrap up in New York on September 19 ahead of expected pricing.

Citigroup, HSBC and JP Morgan are acting as global coordinators, while BBVA and Santander are coming in as joint bookrunners. Expected ratings are Baa1/BBB+/BBB+.


Brazil’s BRF GmbH, a wholly owned subsidiary of BRF SA, (rated Ba1/BBB/BBB) has mandated BB Securities, Bradesco, Itau, JP Morgan and Santander to organize a series of fixed-income investor meetings. A US dollar-denominated 144A/Reg S senior unsecured bond issue with intermediate to long maturity is expected to follow, subject to market conditions. The meetings will take place in New York, Los Angeles and London on Sept 12 and New York, Chicago and Boston on Sept 13.

Earlier on Wednesday, the Brazilian food company launched a tender offer targeting about US$291m in outstanding 2020 and 2022 bonds. The borrower is offering purchase price of 112.75 on the 7.25% 2020s and 110.50 on the 5.875% 2022s. BNP Paribas, BTG Pactual and HSBC are acting as dealer managers on that offer, which expires on September 14. (Reporting by Mike Gambale; editing by Shankar Ramakrishnan)

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