October 11, 2016 / 9:17 PM / 2 years ago

LATAM CLOSE-Two issuers raise US$1.665bn in LatAm primary

* CFE amasses US$5.5bn book for new debt issue

* Bermuda returns to bond market with new 10-year

* Creditors work with Egyptian billionaire to shore up Oi

By Mike Gambale

NEW YORK, Oct 11 (IFR) - Below is a recap of primary issuance activity in the Latam primary market on Tuesday:

Number of deals priced: 2

Total issuance volume: US$1.665bn


Comision Federal de Electricidad (CFE), a Mexican state-owned utility, announced a bond maturing in February 2027. Expected ratings are Baa1/BBB+/BBB+. BBVA, Bank of America Merrill Lynch and Citigroup are acting as leads.

IPT: T+337.5bp area

PRICE GUIDANCE: T+312.5bp area (+/- 12.5bp)

LAUNCH: US$1bn at T+300bp

PRICED: US$1bn 4.75% cpn 10-year (2/23/2027). At 99.876, yld 4.766%. T+300bp.

BOOK: US$5.5bn


The government of Bermuda has announced a long 10-year bond. The senior unsecured bond is expected to be rated A2/A+ by Moody's and S&P. Proceeds are being used to help fund a cash tender, to repay a US$200m credit facility and to fund a portion of the fiscal deficit. HSBC is acting as a sole bookrunner.

IPTs: low 200s over Treasuries

PRICE GUIDANCE: T+200bp (+/-5bp)

LAUNCH: US$665m long 10-year bond at T+195bp

PRICED: US$665m long 10-year: 99.986: 3.717%Y; T+195bp - Maturity January 25 2027

BOOK: North of US$1.6bn


LATAM Airlines Group S.A. ("LATAM", NYSE: LFL), a Chile-based airline group, mandated Citi and J.P. Morgan as global coordinators and joint bookrunners and BNPP, BofAML, Deutsche Bank, and Santander as joint bookrunners to arrange a series of fixed income investor meetings in Chile, Europe, and the US commencing on October 12. A USD-denominated benchmark 144A/Reg S 7-year offering is expected to follow, subject to market conditions.

Meeting schedule as follows: October 12, Santiago; October 14, Los Angeles; October 17, London; October 18, Boston; October 19, New York.

Global Bank, from Panama, is preparing a possible senior unsecured note. The issuer was in Boston on Wednesday and Los Angeles on Thursday. Ratings are Ba1/BBB-/BBB-.

The deal is being done in conjunction with a tender for its outstanding 2017 covered bonds. Citigroup, Deutsche Bank and JP Morgan have been mandated as leads, with UBS coming in as co-manager.

Nafin, a Mexican development bank, has wrapped up roadshows, as it looks to market a potential US dollar bond through Bank of America Merrill Lynch and HSBC. The issuer is rated A3/BBB+/BBB+.

The Republic of Suriname (B1/B+/B+) is roadshowing this week and next to market a potential debut 144A/Reg S bond offering.

The borrower was in London on Tuesday and will head to Boston on October 12, the mid Atlantic coast on October 13, the West Coast on October 14. Roadshows will finish in New York on October 17 and 18. Oppenheimer and Scotiabank have been mandated to organize the meetings. (Reporting by Mike Gambale; Editing by Shankar Ramakrishnan)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below