25 de octubre de 2016 / 21:42 / hace un año

LATAM CLOSE-Two issuers set to price bonds on Tuesday

* Mexico returns to euro market with two-tranche trade

* Argentina’s Province of Santa Fe launches US$250m tap

* S&P cuts PDVSA’s credit rating to selective default

* Brazil’s current account gap shrinks in September

By Mike Gambale

NEW YORK, Oct 25 (IFR) - Below is a recap of primary issuance activity in the LatAm primary market on Tuesday.

Number of deals priced: 1

Number of deals expected to price later Tuesday: 1

Total expected issuance volume: US$250m, E1.9bn

MEXICO

Mexico announced a new long eight-year euro and a tap of its 3.375% euro note due November 2031. Bookrunners on the SEC-registered unsecured deal are BNP Paribas, Citigroup and Santander. Expected ratings on the transaction are A3 negative/BBB+ negative/BBB+ stable.

IPTs: January 2025: 140bp-145bp over mid-swaps, 15-year: 2.45% area

GUIDANCE: MS+135bp area on long 8-yr; 2.35% area on tap of 3.375% 2031

FINAL GUIDANCE: MS+125bp (the number) on long 8-yr; 2.20%-2.25% on tap of 3.375% 2031. Total size capped at EUR1.9bn.

PRICED: EUR1.9bn two-part offering:

- EUR1.2bn 1.375% long 8-yr (01/15/2025) at 99.127, 1.489% yld. Settle: 11/01/2016.

- EUR700m tap of 3.375% 2031 (02/23/2031) at 114.285, 2.2% yld. Settle: 11/01/2016

BOOK: EUR5bn

EXPECTED TO PRICE LATER TUESDAY

PROVINCE OF SANTA FE

The Province of Santa Fe announced a US$250m (will not grow) 11-year final, 10-year average life bond. The senior unsecured bond is expected to be rated B3/B by Moody’s and Fitch. JP Morgan is acting as global coordinator and is also bookrunner along with Citigroup and HSBC. The bond matures on November 1 2027 and has three amortizations starting on November 1 2025. Proceeds are going to finance public work projects.

IPTs: Low 7%s

LAUNCH: US$250m at 6.9%

PIPELINE:

Argentina’s Compania General de Combustibles has started roadshows to market a possible US dollar bond through Bank of America Merrill Lynch, Citigroup and Itau.

The company was in London on Tuesday, and will head to New York on Wednesday, Boston on Thursday and in New York again on Friday. Expected ratings are B-/B by S&P and Fitch.

Argentina’s Banco Macro (B3/-/B) has mandated Goldman Sachs and UBS as joint bookrunners, and Macro Securities as local placement agent, for fixed income investor meetings commencing October 25.

An up to US$400m 144A/Reg S Basel 3 compliant T2 ten-year non call five issuance, rated Caa1 by Moody’s and B- by Fitch may follow, subject to market conditions.

Roadshow schedule is as follows: Tuesday, October 25th: London, Wednesday October 26th: New York, Thursday October 27th: Boston, Friday October 28th: Los Angeles, Monday October 31st: New York.

Trinidad Generation Unlimited (TGU) continues roadshows this week to market a potential benchmark US dollar bond.

The borrower was in Boston on Tuesday and will head to New York on October 26. Expected ratings for the 144A/RegS senior unsecured note are BBB/BBB-. TGU is the largest energy supplier in Trinidad & Tobago

LATAM Airlines Group S.A. (“LATAM”, NYSE: LFL), a Chile-based airline group, has finished roadshow ahead of a possible a USD-denominated benchmark 144A/Reg S 7-year offering. Citigroup and JP Morgan are mandated as global coordinators and joint bookrunners and BNPP, BofAML, Deutsche Bank, and Santander as joint bookrunners. (Reporting by Mike Gambale; Editing by Paul Kilby)

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