September 22, 2016 / 10:27 PM / 2 years ago

LATAM CLOSE-Four issuers raise US$3.05bn in LatAm primary

* Latam issuers rush to market after FOMC

* Mexico Liverpool preps investor meetings

* Argentina to take third crack at debt raising this year

* UBS hires new EM syndicate head

By Mike Gambale and Paul Kilby

NEW YORK, Sept 22 (IFR) - Below is a recap of primary issuance activity in the LatAm market on Thursday:

Number of deals priced: 4

Total issuance: US$3.05bn


BRF GMBH, Ba1/BBB/BBB, announced a US$ benchmark 144A/RegS 10-year senior unsecured notes. Active bookrunners are BB Securities, Bradesco BBI, Itaú BBA, J.P. Morgan and Santander. Guarantor: BRF S.A. UOP: refinancing.

IPTS: 4.875%-5.0%

PRICE GUIDANCE: 4.75% area (+/- 12.5bp)

LAUNCH: US$500m at 4.625%

PRICED: US$500m 4.35% cpn 10-year (9/29/2026). At 97.818, yld 4.625%.


Mexico City airport, two tranche 10 and 30-year 144A/Reg S senior secured USD benchmark. The green bond, which is being issued through a special purpose trust, is expected to be the first of up to US$6bn of such trades to help fund the construction and operation of the airport.

Bondholders will be paid through cash flows collected from passenger charges from the current airport and the new Mexico City International Airport (NAICM) that will start operations in 2020. The issuer wrapped up roadshows in New York on Monday.

Citigroup, HSBC and JP Morgan are acting as global coordinators, while BBVA and Santander are coming in as joint bookrunners. Expected ratings are Baa1/BBB+/BBB+.

IPTS: T+low 300bp for the 10yr

T+ mid-high 300s for the 30-yr

PRICE GUIDANCE: 10-year at 287.5bp area; 30-year at 337.5bp area (area = +/- 1/8)

LAUNCH: US$1bn 10-yr at T+275bp; US$1bn 30-yr at 325bp

PRICED: Total US$2bn.

- US$1bn 10-yr: 99.009; 4.25%C; 4.372%Y; T+275bp - Settlement Sept 29 2016 - Maturity Oct 31 2026

- US$1bn 30-yr: 98.631: 5.5%C; 5.594%Y; T+325bp - Settlement Sept 29 2016 - Maturity Oct 31 2046

BOOKS: 10-year: US$10bn; 30-year: US$4bn


Argentina’s municipality of Cordoba’s Reg S bond, which amortizes in years six, seven and eight, is expected to be rated B3 (Moody’s) / B (Fitch). Use of proceeds is to refinance certain existing indebtedness and fund infrastructure projects and public works. Santander is the bookrunner.

IPTS: low-to-mid 8% on US$150m eight-year amortizing bond.

PRICE GUIDANCE: USD150m 8-year at 8% area (+/- 12.5bp)

LAUNCH: US$150m 8-year at 7.875%

PRICED: US$150m 8-year: par; 7.875%C - Settlement: 29 September; Final maturity 29 September 2024


Mexican financing and leasing company Unifin, US$400-500m 7NC4 senior unsecured 144A/Reg S deal. Expected ratings are BB/BB by S&P and Fitch. Citigroup, Credit Suisse and UBS have been mandated as joint bookrunners.

IPTS: mid 7%s

PRICE GUIDANCE: US$400m-US$500m 7NC4 at 7.375% area (+/-1/8)

LAUNCH: US$400m 7NC4 at 7.25%

PRICED: US$400m 7NC4; par; 7.25%C


Ouro Verde Locacao e Servicio, rated BB-/BB-, announced a US$300m 5NC3. The Brazilian company leases heavy equipment, machinery and fleets of light vehicles. Bradesco, Santander and Scotiabank are acting as joint bookrunners. The senior unsecured bond is expected to be listed in Luxembourg.

IPTS: low-to-mid 8%

Mexican retailer Liverpool has selected banks to take it on roadshows to market a possible 10-year bond to international investors.

The borrower will be in London and Los Angeles on September 26, in Boston and New York on September 27 and in New York again on September 28. Citigroup, Credit Suisse and Morgan Stanley have been mandated on the deal.

Mexican bank Banorte will kick off roadshows next week to market a Tier 2 Basel III compliant bond to international investors.

The borrower will be London and Los Angeles on September 26 and in New York and Boston on September 27. The bank is eyeing either a 15NC10 or a 10NC5 bond. Ratings on the sub debt are expected to be Ba1/BB+, while the bank itself is rated A3/BBB+/BBB+.

Bank of America Merrill Lynch, JP Morgan and Morgan Stanley have been mandated on the deal.

The Republic of Argentina is planning a dual-tranche, benchmark sized euro denominated bond issue, according to a lead.

The sovereign has mandated BBVA, BNP Paribas and Credit Suisse to arrange a series of fixed income investors meetings in Europe commencing on September 26.

The issuer is rated B3/B-.

The Republic of Peru has started roadshows in the US and Europe to market a local currency bond sale to international investors. Fixed-income investor meetings will take place between September 19 and 23, stopping in New York, Los Angeles, Boston, London and Frankfurt. BBVA, Bank of America Merrill Lynch and HSBC have been mandated to arrange the meetings. Ratings are A3/BBB+/BBB+.

Mexico’s Banco Inbursa has finished marketing a new US dollar 10-year senior unsecured bond, which is expected to be rated BBB+/BBB+. Bank of America Merrill Lynch, Citigroup and Credit Suisse have been mandated as leads.

JSL, a logistics services provider operating in Brazil, has wrapped up roadshows on a possible 144A/Reg S senior unsecured US dollar bond. BB Securities, Bradesco BBI, Morgan Stanley and Santander have been mandated on the deal. Ratings are BB/BB by S&P and Fitch.

Votorantim Cimentos (rated Ba2 /BB+/BBB-) has mandated Banco Votorantim, BofA Merrill Lynch, Citigroup, HSBC, JP Morgan and Santander to arrange a series of fixed income investor meetings in Europe and the United States, commencing on September 22, 2016.

A benchmark USD144A/Reg S senior notes offering with intermediate maturity may follow, subject to market conditions and results of a concurrent tender offer.

The roadshow starts in Switzerland on September 22 and continues in London on September 23. The tender is for cash and is targeting the following outstanding EUR notes: EUR559.7m 3.250% 2021s.

Brazilian corporate Ultrapar will start roadshows next week to market a possible RegS senior unsecured US dollar bond.

The company representatives will be in Boston and London on September 26, Los Angeles and New York on September 27 and in New York again on September 28. BB Securities, Bradesco BBI, Morgan Stanley and Santander have been mandated to organize investor meetings. Ratings are Ba1/BB+.

Ultrapar is involved in specialized distribution and retail, specialty chemicals and liquid bulk storage. (Reporting by Mike Gambale and Paul Kilby; Editing by Shankar Ramakrishnan)

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