Axtel prices $300 million; Bradesco, Arcos Dorado mandate bookrunners; EMBI+ weakens

By Paul A. Harris

St. Louis, Sept. 17 - The strong rally over recent sessions in emerging markets came to a halt Thursday. The EMBI-plus index ended the session at 318 bps bid, according to market source. That was out 8 bps from the 310 bps bid close on Wednesday.

Wednesday had seen the measure tighten by 18 bps.

Still, primary market activity rolled on.

Axtel, SAB de CV priced a $300 million issue of 10-year senior notes (Ba2/BB-/BB) at par to yield 9%, according to a market source.

The yield printed at the tight end of the 9% to 9¼% price talk.

Bank of America Merrill Lynch and Credit Suisse were joint bookrunners for the Rule 144A and Regulation S offering.

Proceeds will be used to repay debt and for general corporate purposes.

Axtel is a telecommunications company based in Monterrey, Mexico.

Bradesco, Arcos Dorado mandate

Banco Bradesco SA mandated HSBC and Bradesco BBI to lead its dollar-denominated offering of 10-year tier 2 bonds (expected ratings Baa3//BBB), according to a market source.

The deal is expected to launch, pending market conditions, following investor meetings in Europe and the United States.

Bradesco is a private bank headquartered in Osasco, Brazil.

Elsewhere Arcos Dorado BV, Latin America's biggest restaurant company, plans to start a roadshow on Monday for its benchmark-sized, dollar-denominated offering of senior notes, according to a market source.

The company, which owns the license to operate McDonald's restaurants throughout the region, operates out of Buenos Aires, Argentina.

Morgan Stanley and Bank of America Merrill Lynch are joint bookrunners for the Rule 144A/Regulation S offering.

Moody's Investors Service is expected to assign its Ba2 issuer rating to Arcos Dorados. The expected Standard & Poor's issuer rating is BBB-.

Roadshows will feature presentations in London and Hong Kong on Monday, New York and Singapore on Tuesday, Boston and Geneva, as well as Zürich on Wednesday, and Los Angeles on Thursday.

Pricing is subject to market conditions.

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