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LATAM CLOSE-Two issuers expected to tap LatAm for US$2.25bn
March 9, 2016 / 10:54 PM / 2 years ago

LATAM CLOSE-Two issuers expected to tap LatAm for US$2.25bn

* Province of Buenos Aires nearly 3 times oversubscribed

* CEMEX doubles bond size to US$1bn

* Solid price progression in both deals

* Wednesday supply to help open LatAm primary market

By Mike Gambale

NEW YORK, March 9 (IFR) - Below is a recap of primary issuance in the LatAm primary market on Wednesday:

Number of deals expected to price: 2

Total issuance volume expected: US$2.25bn


The Province of Buenos Aires, expected ratings Caa2/B- (p/s), announced a US$ benchmark 2024 (avg life 7-year) senior unsecured note offering via CITI/HSBC/JPM. 144a/RegS. Local co-manager is Banco de la Provincia de Buenos Aires. Amortizations: 3 equal amortizations in 2022, 2023, and 2024. UOP: Funding of social, infrastructure and other public investment projects and debt refinancing. Settlement date T+5.

IPT: Mid to high 9s.

PRICE GUIDANCE: 9.375-9.50%

LAUNCH: US$1.25bn 2024 notes at 9.375%

PRICED: US$1.25bn. Cpn 9.125%. Due 3/16/2024. Ip US$98.741. Yld 9.375%.

BOOK: US$3.7bn


CEMEX S.A.B. de C.V., B+/BB-, announced a US$500m 144A/RegS 10-year (4/15/26) non-call 5-year senior secured note offering via active-bookrunners BBVA/BAML/CITI. Passive-bookrunners are HSBC/ING/SANT. UOP: to fund the redemption and/or repurchase of (i) the 9.875% U.S. Dollar-Denominated Senior Secured Notes due 2019, (ii) the 9.875% Euro-Denominated Senior Secured Notes due 2019, (iii) the 9.500% Senior Secured Notes due 2018, and the remainder, if any, for general corporate purposes, including the repayment of indebtedness. Pricing expected today. Settle: T+5.

IPT: 8.375% area

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

LAUNCH: US$1bn (upsized US$500m) at 7.75%


Raizen Energy launched a cash tender offer on its 7% due 2017 notes, according to a regulatory statement. The Brazilian company plans to buy up to US$200m of the outstanding US$400m notes. Raizen is seeking to buy the bonds back at 100.25, with a US$30 early bird incentive added.

The early deadline is March 4, with the final deadline on March 18. Citigroup, Credit Agricole and JP Morgan are the dealer arrangers.

Argentina will sell US$11.68bn worth of 5-, 10- and 30-year bonds under U.S. law in mid April if Congress swiftly approves a debt deal for holdout creditors, top finance ministry officials told Congress on Friday.

Finance Secretary Luis Caputo told lawmakers who will debate the debt agreement that the bonds would carry an interest rate in the region of 7.5 percent.

Colombia has mandated BBVA, Goldman Sachs and JP Morgan to organize meeting with fixed-income investors in Europe to discuss opportunities in the capital markets this year.

Finance Minister Mauricio Cardenas will attend the meetings, which start on March 8 in London. Discussions continue in Germany on March 9, the Netherlands on March 10 and in London again on March 11. Ratings are Baa2/BBB/BBB (stable/negative/stable) by Moody‘s, S&P and Fitch.

The board of Argentine real estate developer IRSA has approved the issuance of up to US$470m of debt, according to a filing with local regulators.

The Province of Mendoza is looking to raise US$300m in both the local and international markets to refinance debt, according to local reports.

Neuquen province is contemplating a bond issue.

The United Mexican States has filed an up to US$10bn debt shelf with the US Securities and Exchange Commission. Proceeds will be used for general purposes, including refinancing and the repurchase of debt.

Argentine E&P company Medanito has wrapped up roadshows ahead of a possible transaction through Itau and UBS. Expected rating is CCC+ by Fitch.

Concesion Pacifico Tres, a toll-road concession in Colombia, wrapped up a roadshow through Goldman Sachs. The company is looking to raise up to US$272m of bonds, according to Fitch, which has rated the senior secured bonds BBB-.

Pacifico Tres is jointly owned by Construcciones El Condor SA, Mario Alberto Huertas Cotes, and Constructora MECO SA. Banca de Inversion is acting as its financial advisor.

Argentina utility Pampa Energia’s shareholders have approved a US$500m debt program.

Uruguay plans to raise up to US$1.5bn in bonds this year.

Fomento Economico Mexicano, S.A.B. de C.V. (FEMSA), rated A- and A by S&P and Fitch, respectively, has mandated BBVA, Credit Suisse and Deutsche Bank to arrange a series of fixed income investor meetings in Europe.

The investor meetings are expected to take place in the week commencing March 7 2016. A euro-denominated bond transaction may follow subject to market conditions.

Reporting By Michael Gambale; editing by Shankar Ramakrishnan

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