* PDVSA confirms 2017 bond swap offer
* Pemex returns with bond sale, liability management trade
* Brazil's Ouro Verde picks banks to market US dollar bond
By Mike Gambale
NEW YORK, Sept 13 (IFR) - Below is a recap of primary
issuance activity in the LatAm market on Tuesday:
Number of deals priced: 1
Total issuance: US$4bn
Petróleos Mexicanos (PEMEX), Baa3/BBB+/BBB+, announced a US$
benchmark 144A/RegS w/ reg rights 2-part senior unsecured notes
that include a 7-year (2023) and 31-year (2047). Active
bookrunners: Barclays / Citi (B&D) / HSBC / MUFG / Natixis.
Guarantors: Pemex Exploración y Producción, Pemex Transformación
Industrial, Pemex Perforación y Servicios, Pemex Logística,
Pemex Cogeneración y Servicios. Use of Proceeds: Fund concurrent
cash tender offer, transaction fees and expenses for concurrent
cash tender offer and exchange offer, finance investment
IPTS: 7yr 4.75% area, 31yr 6.75% area
PRICE GUIDANCE: 7yr 4.75% (+/- 12.5bp), 31yr 6.75% (#)
LAUNCH: US$4bn 2-part. US$2bn 7yr at 4.625%, US$2bn 31yr at
PRICED: US$4bn 2-part total.
- US$2bn 4.625% cpn 7yr (9/21/23). At 100, yld 4.625%.
- US$2bn 6.75% cpn 31yr (9/21/47). At 100, yld 6.75%.
Ouro Verde Locacao e Servicio will start roadshows this week
to market a possible US dollar 144A/RegS bond.
The company will be in London on September 14-15, and
Switzerland on September 16.
The following week it will head to Los Angeles on September
19, Boston on September 20 and New York on September 21. The
Brazilian company, rated BB-/BB-, leases heavy equipment,
machinery and fleets of light vehicles. Bradesco, Santander and
Scotiabank are organizing roadshows.
Mexico's Banco Inbursa is marketing a new US dollar 10-year
senior unsecured bond, according to market sources. The roadshow
finished Monday in New York and Los Angeles. Expected ratings
are BBB+/BBB+. Bank of America Merrill Lynch, Citigroup and
Credit Suisse have been mandated as leads.
Argentina's YPF (B3/NR/B) has mandated Credit Suisse and UBS
to arrange fixed-income meetings in Switzerland on September
12-13. A potential debut Swiss franc unsecured debt offering may
JSL, a logistics services provider operating in Brazil, is
roadshowing a possible 144A/Reg S senior unsecured US dollar
bond. The borrower wrapped up meetings in New York on Tuesday.
BB Securities, Bradesco BBI, Morgan Stanley and Santander have
been mandated on the deal. Ratings are BB/BB by S&P and Fitch.
Bankers has started marketing a Green bond to help fund the
construction and operation of Mexico City's new international
The bond, which is being issued through a special purpose
trust, is expected to be the first of up to US$6bn of such
trades, allowing the borrower to create an extensive curve over
time. 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
The issuer will be London on Wednesday, Boston on Thursday
and Los Angeles on Friday. Roadshows will wrap up in New York
on September 19 ahead of expected pricing. Citigroup, HSBC and
JP Morgan are acting as global coordinators, while BBVA and
Santander are coming in as joint bookrunners. Expected ratings
Brazil's BRF GmbH, a wholly owned subsidiary of BRF SA,
(rated Ba1/BBB/BBB) has mandated BB Securities, Bradesco, Itau,
JP Morgan and Santander to organize a series of fixed-income
investor meetings. A US dollar-denominated 144A/Reg S senior
unsecured bond issue with intermediate to long maturity is
expected to follow, subject to market conditions. The meetings
finished in New York, Chicago and Boston on Tuesday.
The Brazilian food company has launched a tender offer
targeting about US$291m in outstanding 2020 and 2022 bonds. The
borrower is offering a purchase price of 112.75 on the 7.25%
2020s and 110.50 on the 5.875% 2022s. BNP Paribas, BTG Pactual
and HSBC are acting as dealer managers on that offer, which
expires on September 14.
(Reporting by Mike Gambale; editing by Shankar Ramakrishnan)