Unigel notes offering ‘missing in action’; Russia pricing $4 billion new notes, 2047 tap

By Rebecca Melvin

New York, March 16 – Unigel Participacoes SA’s dollar benchmark offering of seven-year notes was ‘missing in action’ on Friday after pricing for the deal for the Brazilian commodity chemical producer failed to materialize following the conclusion of roadshow meetings and price talk on Wednesday.

The deal had been talked at $400 million in size to yield in the area of 8%.

“I heard it was missing in action,” a New York-based market source said.

Bookrunners Morgan Stanley and UBS Investment Bank would not comment on the deal.

A New York-based syndicate source, away from the deal, said, “It was a tough sell, I think. The market is relatively soft, and this was a single B company that had just come out of a restructuring process.”

Meanwhile, demand for Russian paper was resilient this past week in the face of mounting political tensions between that country and the West. On Friday, Russia was pricing new 11-year notes and a tap of its notes maturing in 2047. Guidance on the $1.5 billion of sovereign 11-year notes was tightened to 4 5/8% to 4¾% from initial talk in the area of 4¾%. And 5½% yield was expected on the $2.5 billion tap of Russia’s existing 2047 notes, in line with initial talk.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.