May 13, 2016 / 6:22 PM / 2 years ago

LATAM CLOSE-One issuer raises US$575m in primary

* Tocumen prints revived bond with US$575m size

* City of Buenos Aires launches tender for 2017 notes

* Brazil’s new government vows to tackle deficit

* Goldman marketing Colombian road project financing

By Mike Gambale and Paul Kilby

NEW YORK, May 13 (IFR) - Below is a recap of primary issuance activity in the LatAm market on Friday:

Number of deals priced: 1

Total issuance: US$575m


REVISED DEAL: Aeropuerto Internacional de Tocumen, S.A., 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. Settlement date: T+3.

PRICED: US$575m (upsized from US$500m) 20-yr at 100. Yield 5.625%.


City of Buenos Aires will start roadshows next week to market a new 144A/RegS dollar bond to finance a debt tender.

The borrower will be in Switzerland on May 17, in London and Los Angeles on May 18, in New York on May 19 and in Boston on May 20. The following week it will return to New York on May 23.

Proceeds will be used to help fund an up to US$390m tender for its 9.95% Series 10 due 2017 notes. The outstanding amount is US$415m. Investors will be paid 105.5. Merrill Lynch, Pierce, Fenner & Smith, Deutsche Bank and HSBC are acting as leads and dealer mangers.

Goldman Sachs is on the road marketing a US$500m financing package for Colombian road project Costera, Clemente del Valle, CEO of the country’s development bank Financiera de Desarrollo Nacional, said on Friday.

“They are exploring between bonds and loans, and depending on demand they will decide which of the two they will use,” del Valle told IFR on the sidelines of the Colombia InsideOut conference in New York.

The borrower is looking at dollar bonds as well as inflation-linked peso bonds and loans, according to Fitch, which assigned a BBB- rating to the notes this week.

Peruvian power company Kallpa Generacion will start roadshows this week to market a US dollar-denominated 144A/RegS bond through Credit Suisse, Credicorp Capital, Morgan Stanley and Scotiabank.

The power generation company, the largest subsidiary of Inkia Energy & IC Power, visted investors in Peru and London this week. Next week it will head to Chile and Los Angeles on May 16, New York on May 17 and Boston on May 18. Proceeds are going toward refinancing debt. Expected ratings are Baa3/BBB- by Moody’s and Fitch.

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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