May 5, 2016 / 8:42 PM / 2 years ago

LATAM CLOSE-One issuer raises US$235m in primary market

* Banco Industrial prints new DPR bond

* Province of Mendoza to market US dollar bond

* GOL suffers string of rating downgrades

By Mike Gambale

NEW YORK, May 5 (IFR) - Below is a recap of primary issuance activity in the LatAm market on Thursday:

Number of deals priced: 1

Total volume: US$235m


Argentina’s Province of Neuquen announced a 12-year bond with an eight-year average life. The province is also offering to swap the existing 7.875% secured notes due 2021 for the new secured 2028. The new money component is expected to be US$235m in size, not including any other bonds issued on the back of the exchange. Deutsche Bank and JP Morgan are acting as leads on the deal. The deal is rated B by Fitch.

IPTs 9.5% area

GUIDANCE: 12-year at 9% area (+/- 1/8) - Books US$1.5bn plus

UPDATE: Province of Neuquen revises guidance on 12-year to 8.75% (+/- 1/8)

LAUNCH: US$235m 12-year at 8.625%

PRICED: US$235m 12-year; par; 8.625%C, Settlement May 12 2016; Final Maturity May 12 2028

BOOK: US$1.25bn


Argentina’s Province of Mendoza has mandated Citigroup and Credit Suisse to take it on the road this week and next as it seeks to market a potential US dollar 144a/RegS bond among international investors.

The Province is looking to raise US$300m in both the local and international markets to refinance debt, according to local reports.

The borrower will be in London on Friday and will head to Los Angeles on May 9, Boston on May 10 and New York on May 11. Ratings are B2/B- by Moody’s and S&P. The offering of bonds, which will by backed gas royalties, is being done in conjunction with an exchange for outstanding 2021.

Colombia’s Banco de Bogota has hired banks to arrange investor meetings ahead of a potential subordinated bond sale. Banco de Bogota is expected to issue US$1bn through 10-year Tier 2 notes. Rated Ba2 by Moody’s and BBB by Fitch.

The bank has hired Credit Suisse, HSBC and JP Morgan to arrange meetings in London, New York, Los Angeles and Boston between May 3 and May 6.

The Province of Chubut is preparing to sell an up to US$83m New York law bond due in 2023, according to Moody’s, which assigned a B3 rating to the issue on Thursday. (Reporting by Mike Gambale; editing by Shankar Ramakrishnan)

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