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LATAM CLOSE-One issuer raise US$5.5bn in LatAm primary
December 6, 2016 / 10:47 PM / a year ago

LATAM CLOSE-One issuer raise US$5.5bn in LatAm primary

* First deal in LatAm primary since Nov 10

* Pemex 5 times covered

* Slow Brazilian recovery could mean bigger rate cuts

* Mexican consumer confidence nears 3-year low in Nov

By Mike Gambale

NEW YORK, Dec 6 (IFR) - Below is a recap of primary issuance activity in the US LatAm market on Tuesday:

Number of deals priced: 1

Total issuance volume: US$5.5bn


Petróleos Mexicanos (PEMEX), Baa3/BBB+/BBB+, announced a US$ benchmark 144A/RegS 3-part senior unsecured note offering that includes a long 5-year (3/2022) fixed and/or FRN and a long 10-year (3/2027) fixed note. The active bookrunners are Bank of America, Citigroup, JPMorgan, Mizuho and Morgan Stanley.

Guarantors: Pemex Exploración y Producción, Pemex Transformación Industrial, Pemex Perforación y Servicios, Pemex Logística and Pemex Cogeneración y Servicios. Use of Proceeds: GCP and 2017 Pre-funding. Settlement: T+5 (Dec 13, 2016).

IPTS: 5yr FXD 6%-low 6%, 5yr FRN Libor equiv, 10yr FXD 7%-low 7%

PRICE GUIDANCE: 5yr FXD 5.625% area, 5yr FRN Libor equiv, 10yr FXD 6.75% area. Area is +/- 12.5bp.

LAUNCH: US$5.5bn 3-part. US$1.5bn 5yr FXD at 5.50%, US$1bn 5yr FRN at 3mL+365bp, US$3bn 10yr FXD at 6.625%

PRICED: US$5.5bn 3-part.

- US$1.5bn. Cpn 5.375%. Due 3/13/22. Ip US$99.446. Yld 5.50%. T+366.4bp. MWC T+50bp. First pay 3/13/17.

- US$1bn. Cpn 3mL+365bp. Due 3/11/22. Ip par. Yld 3mL+365bp. First pay 3/11/17.

- US$3bn. Cpn 6.50%. Due 3/13/27. Ip US$99.094. Yld 6.625%. T+423.3bp. First pay 3/13/17.

BOOK: US$27.5bn total; 5-year FRN US$4bn, 5-year FXD US$12bn, 10-year US$11.5bn

NIC: 5-year FXD: About 30bp (vs. 6.375% ‘21s at 5.00%, add about 20bp for maturity extension, FV=5.2%)

10-year: About 30bp (vs. 6.875% ‘26s at 6.30%, add a couple of basis points for maturity extension, FV=6.325%)


PEMEX 6.375% February 4, 2021 at 5.00%

PEMEX 4.875% January 24, 2022 at 5.21%

PEMEX 6.875% Aug 4, 2026 at 6.30%


Inversiones Atlantida, the largest financial group in Honduras, has finished roadshows to market a potential debut US dollar bond through Oppenheimer. Expected ratings are B/B by S&P and Fitch.

Argentina’s Province of Entre Rios has finished roadshows ahead of a possible US dollar bond. Citigroup, HSBC and Santander organized investor meetings. Expected ratings are B-/B by S&P and Fitch.

Colombian glass company Tecnoglass has wrapped up investor meetings ahead of an up to US$225m debut dollar bond with a tenor of between five and seven years.

Expected ratings are Ba3/BB- by Moody’s and Fitch. Bank of America Merrill Lynch and Morgan Stanley have been mandated as joint bookrunners. (Reporting by Mike Gambale; editing by Shankar Ramakrishnan)

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