19 de noviembre de 2015 / 17:03 / en 2 años

LATAM WRAP-Televisa breaks lull in LatAm primary market

NEW YORK, Nov 19 (IFR) - Mexico’s Televisa injected some life into the Latin American primary market on Thursday with an up to US$1.2bn bond sale - the media company’s first dollar deal in a year and a half.

With initial price thoughts of Treasuries plus 262.5bp area on the shorter-dated bond and T+337.5bp area on the 30-year, Televisa is seen offering a generous premium over its curve.

That conservative approach has become standard practice in what remains a risk-off market for issuers in the EM space, with just US$525m in LatAm supply so far in November.

Some bankers away from the deal calculated that IPTs were offering a premium of up to 60bp over the curve, where the existing 2045s were trading at 280bp-275bp over US Treasuries.

“They are starting pretty cheap on the 30-year, but I am sure they want to capture what demand is out there with attractive relative value,” said a syndicate manager.

Calculating a new issue concession on the 10-year is trickier, as the outstanding 6.625% 2025 is an old bond trading at a high dollar price of 117, or a G-spread of around 220bp.

Like other borrowers in Latin America, Televisa (Baa1/BBB+/BBB+) has had to validate new levels as investors rethink EM risk ahead of an expected US rate hike in December.

When Televisa last came to market in May 2014 it issued the 2045 at a spread of T+180bp.

“I don’t think the word concession was in their (Televisa‘s) vocabulary, but everyone is paying up these days,” a second banker told IFR.

The deal is expected to draw a decent crowd among both EM and crossover accounts who like the credit, its rarity value and the pick-up to comparable Mexican blue chips and US peers.

In Mexico similarly-rated baking company Bimbo (Baa2/BBB) has a 2024 trading at a G spread of 160bp, while higher-rated Coca Cola Femsa (A2/A-) and America Movil has 2023s and 2022s trading at G-spreads of around 159bp and 150bp, respectively.

Televisa’s price talk is also coming wider to where Time Warner (Baa2/BBB) this week printed a US$600m 10-year at T+162.5bp and a US$300m tap of its 2045 at T+200bp.


Arcos Dorados, the largest McDonald’s franchiser in South America, held a Swiss roadshow in the week ended November 6 via Credit Suisse. The Argentina-based, NY-listed company is rated Ba3/NR/BB+.

Mexican white-goods manufacturer Controladora Mabe has finished investor meetings through Barclays, Bank of America Merrill Lynch, Citigroup and JP Morgan. Ratings are BB+/BB+.

Mexican REIT Fibra Uno completed meetings with investors through Bank of America, Credit Suisse, HSBC and Santander.

Brazilian airline Gol (B3/B-/B-) has completed roadshows with Morgan Stanley, Credit Suisse and Citigroup. (Reporting by Paul Kilby; Edited by Natalie Harrison and Marc Carnegie)

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