May 12, 2016 / 8:52 PM / 2 years ago

LATAM CLOSE-One issuer raises US$500m in LatAm primary

* Province of Mendoza adds to Argentina supply

* Citigroup revives Tocumen airport bond

* Brazil bond rally fades following impeachment vote

* Gol CEO says restructuring offer ‘not negotiable’

By Mike Gambale and Paul Kilby

NEW YORK, May 12 (IFR) - Below is a recap of primary issuance activity in the LatAm market on Thursday:

Number of deals priced: 1

Total issuance: US$500m


Argentina’s Province of Mendoza announced a US$300m-US$500m amortizing 2024 bond. The senior unsecured 144A/RegS bond has an average life of seven years and amortizes in 2022, 2023 and 2024. Proceeds from the 144A/RegS deal are slated for debt payments as well as the funding of social, infrastructure and other public investment projects. Citigroup and Credit Suisse are acting as leads on the trade, which is rated B3/B- by Moody’s and S&P.

IPTs low 9s%

GUIDANCE: US$300m-US$500m 2024 at 8.875% area (+/-12.5bp)

FINAL GUIDANCE: 8.75% (+/-12.5bp)

LAUNCH: US$500m 2024 bond at 8.625%

PRICED: US$500m 2024: 98.710; 8.375%C; 8.625%Y to average life; Settlement May 19 2016; Final Maturity May 19 2024


Aeropuerto Internacional de Tocumen, BBB/BBB, announced a US$500m 144A/RegS 20-year (May 2036) senior secured note offering via sole structuring agent CITIGROUP. Yield: 5.625%. Amortization: Fully amortizing following 10 year principal grace period (15.9yr WAL).

Make-whole call at T+50bp until 12-months prior to maturity. Security:First priority lien over (i) Issuer’s committed aeronautical and non-aeronautical revenues and the Trustee General Account, and (ii) Debt Payment Account and DSRA established for this issuance.

UOP: Proceeds deposited in the CapEx account, net of fees and expenses and Debt Payment Account, DSCR and other reserve account funding. Pricing is expected as early as Friday. Settlement date: T+3.

Argentine mortgage bank Banco Hipotecario has mandated Bank of America and Itau on a tap of its 9.75% 2020s ahead of investors calls this week.

The borrower has set a minimum size of US$100m on the tap, which will be rated B3/B- by Moody’s and S&P. Investor calls are scheduled for Thursday and Friday, with pricing expected next week.

Proceeds are going toward working capital, investments in tangible assets and loan originations. There are currently US$200m in outstanding 2020s. (Reporting by Mike Gambale; editing by Shankar Ramakrishnan)

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