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LATAM CLOSE-One issuer raises US$700m in primary market
January 11, 2017 / 9:21 PM / a year ago

LATAM CLOSE-One issuer raises US$700m in primary market

* Fibria drops controversial covenant language on bond

* Brazil surprises with aggressive rate cut to rescue economy

* Petrobras to invest US$19bn in 2017

* Argentina mandates Santander, BBVA, Citi, DB, HSBC, JPM for bond

By Mike Gambale

NEW YORK, Jan 11 (IFR) - Below is a recap of primary issuance activity in the LatAm primary market on Wednesday:

Number of deals priced: 1

Total issuance volume: US$700m


Fibria Overseas Finance Ltd, exp rating BBB-/BBB-, announced a US$ benchmark SEC registered 10-year senior unsecured notes. Bookrunners: BNP Paribas, BofA Merrill Lynch, Citigroup, HSBC, JP Morgan. The notes are guaranteed by Fibria Celulose S.A. UOP: eligible Green projects. Settle: 1/17/2017.

IPT: very low 6% area

GUIDANCE: 5.75% area (+/- 5bp)

LAUNCH: US$700m at 5.70%

PRICED: US$700m 5.5% cpn 10yr (1/17/2027). At 98.491, yld 5.70%.

BOOK: US$3bn

NIC: 5bp (vs. 5.25% ‘24s at 5.40%, add 2bp for maturity extension, FV=5.65%)


FIBRIA 5.250% May 12, 2024 at a yield of 5.40%


Metro de Santiago is marketing a 30-year bond issue through Bank of America Merrill Lynch and JP Morgan.

The borrower was in London on January 11, and will head to New York on January 12 and 13 and Boston on January 17. Investor calls will also be held on January 16. Expected ratings are A+/A by S&P and Fitch. The new 30 year may carry an optional redemption before maturity.

Argentine energy company Pampa Energia kicked off roadshows this week as it looks to market a new US dollar bond.

The borrower will be in New York on January 11 and 12, in Los Angeles on January 13 and in London on January 16. The company is looking to raise up to US$500m size and considering tenors of five, seven or 10 years.

Expected ratings are B3/B-/B+. Citigroup and Deutsche Bank are acting as joint bookrunners, with Credit Agricole and Santander acting as co-managers.

Aeropuertos Dominicanos Siglo XXI (Aerodom), an airport operator in the Dominican Republic, is marketing a new US dollar bond that will fund a tender and consent solicitation for outstanding debt.

The borrower ended roadshows in New York on Wednesday. JP Morgan and Scotiabank have been mandated as joint bookrunners to arrange meetings. Expected ratings are BB-/Ba3 by S&P and Moody‘s.

Proceeds will go to fund a tender and consent solicitation for Aerodom’s 9.25% senior secured notes due 2019 and for general corporate purposes.

Brazilian power company Neoenergia is considering a possible US dollar bond debut this year after sending out requests for proposals in late 2016, two market sources told IFR.

Neoenergia Group’s principal shareholders are Banco do Brasil’s pension fund Previ, with a 49.01% stake, and Spain’s Iberdrola with a 39% stake, according to the company’s website.

Brazilian bioenergy company Raizen started fixed-income investor meetings this week to market a possible US dollar bond. The borrower will visit accounts in London, New York and Boston between January 9 and 11.

Expected ratings are BBB-/BBB by S&P and Fitch. Bank of America Merrill Lynch, Bradesco, Citigroup, JP Morgan and Santander have been mandate to coordinate roadshows.

The Republic of Honduras, rated B2/B+, has hired Bank of America Merrill Lynch and Citigroup for a US dollar bond roadshow, a bank on the deal told IFR.

This week, the borrower will visit investors in Los Angeles, Boston and New York, where it will end marketing for the deal on January 11.

Argentina power company Genneia is marketing a US dollar bond with an intermediate tenor through Bank of America Merrill Lynch, Itau and JP Morgan.

This week, the company will be in New York, Boston and Los Angeles, where it will end investor meetings on January 11. Ratings are expected to be B3/B+ by Moody’s and Fitch.

Argentina’s Finance Minister Luis Caputo said last month that the administration was considering tapping the debt markets in January, according to Reuters. Local press have been reporting that the sovereign is looking at an up to US$10bn deal. The country needs US$22bn of debt financing this year, plus an additional US$21bn for refinancing needs, Caputo said.

Paraguay is considering raising up to US$550m in the bond market in March, Reuters quoted Finance Minister Santiago Pena saying.

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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