25 de enero de 2017 / 22:04 / en 8 meses

LATAM CLOSE-Two issuers raise US$1.25bn in LatAm primary market

* Corporates lead way in renewed LatAm supply surge

* Chile to raise up to US$9bn-equiv in local market for 2017

* Brazil may issue euro-denominated debt in 2017: Treasury

* Mexico’s Sigma to meet investors ahead of possible euro trade

By Mike Gambale

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

Number of deals priced: 2

Total issuance volume: US$1.25bn

EMBRAER

Brazilian aerospace company Embraer announced a US dollar benchmark 10-year. The senior unsecured bonds are SEC registered and are expected to be rated BBB/BBB-. Embraer Netherlands Finance BV is acting as issuer, while Embraer SA is guarantor. The listing will be in New York, and the bond will be governed by New York law. Bookrunners are BB Securities, JP Morgan and Santander. Settlement is on February 1 2017.

IPTs: High 5%

PRICE GUIDANCE: 5.50% area (+/- 10bp)

LAUNCH: US$750m at 5.40%

PRICED: US$750m 5.40% cpn 10yr (2/01/27). At 100, yld 5.40%. Spread: T+287.7bp. UST Spot: UST: 95-15+ 2.523%.

NIC: Flat (vs. 5.05% ‘25s at G+270bp, add 18bp for maturity extension, FV=T+288bp)

BOOK: US$3.75bn

COMPS: 5.05% June 15, 2025 at G+270bp

CENTRAL AMERICA BOTTLING CORP

The Central America Bottling Corporation (CBC) announced a US$500m 10NC5 bond. Citigroup and JP Morgan are acting as leads. The deal is being done in conjunction with a cash tender for its outstanding 6.75% 2022 notes. Holders who tender by the expiration date of January 25 will receive US$1,036.55 per US$1,000 in principal. The company, rated Ba2/BB/BB+, is a beverage producer, distributor and marketer in Central America and the Caribbean, as well as Ecuador and Peru.

IPTs: Low 6%

PRICE GUIDANCE: US$500m 10NC5 bond at 5.875%-6%

LAUNCH: US$500m 10NC5 at 5.875%

PRICED: US$500m 10NC5: 99.065; 5.75%C; 5.875%Y

PIPELINE

Power generation company AES Argentina has set initial price thoughts of low to mid 8% on a US$300m 7NC4 bond ahead of expected pricing on Thursday. Credit Suisse, Itau BBA and JP Morgan are acting as leads on the 144A/RegS senior unsecured bond.

Sigma Alimentos, a multinational food company with market positions in Europe, the US and Latin America, and sole-owner of Campofrio Food Group, has hired BNP Paribas and JP Morgan as active joint bookrunners and MUFG and Rabobank as Passive Joint Bookrunners to arrange a series of fixed income investor meetings in Europe, commencing on January 30th, 2017. A debut euro-denominated seven-year fixed-rate benchmark offering, expected to be rated Baa3 by Moody‘s, BBB by S&P and BBB by Fitch, is expected to follow.

Aeropuertos Argentina 2000 (AA2000), Argentina’s largest airport concessionaire, has started roadshows to market a senior secured US dollar bond.

The company is in New York on Wednesday, in Los Angeles on Thursday and in Boston on Friday. Expected ratings are B2/B- by Moody’s and S&P. The 10-year deal, which has an average life of 6.1 year, is expected to be US$300m in size, according to a roadshow presentation.

The bond will be backed by collection rights and receivables from passenger user fees as well as the issuer’s indemnification rights in the event the concession is terminated, according to the presentation. Proceeds are being used to redeem outstanding notes and finance capital expenditures.

Oppenheimer and Morgan Stanley have been mandated as joint bookrunners.

Fitch has assigned a B- rating to a US$100m reopening of a 9.5% senior unsecured 2023 note issued by Compania Latinoamericana de Infraestructura y Servicios (CLISA).

The Argentine infrastructure firm issued US$200m of the notes in July last year, but fell short of the US$300m target size. At the time, the seven-year non-call four bonds were priced at 98.753 to yield 9.75%.

BCP Securities and Santander acted as leads on the last deal, which was rated B-/B-.

Brazilian power company Neoenergia is considering a possible US dollar bond debut this year after sending out requests for proposals in late 2016, two market sources told IFR.

Neoenergia Group’s principal shareholders are Banco do Brasil’s pension fund Previ, with a 49.01% stake, and Spain’s Iberdrola with a 39% stake, according to the company’s website.

Paraguay is considering raising up to US$550m in the bond market in March, Reuters quoted Finance Minister Santiago Pena saying.

Inversiones Atlantida, the largest financial group in Honduras, has finished roadshows to market a potential debut US dollar bond through Oppenheimer. Expected ratings are B/B by S&P and Fitch.

Argentina’s Province of Entre Rios has finished roadshows ahead of a possible US dollar bond. Citigroup, HSBC and Santander organized investor meetings. Expected ratings are B-/B by S&P and Fitch. (Reporting by Mike Gambale; Editing by Paul Kilby)

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