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Diamonds and rocks - The best and worst deals of 2007
By Aaron Hochman-Zimmerman
New York, Dec. 31 - Investors each have a different approach to the market, and they often disagreed over the worth of the year's new issues.
Despite the differences of opinion, market watchers came closest to a consensus over the most notable deals.
Ghana's 8.5% $750 million debut 10-year bullet bonds, priced on Sept. 27, was the year's best, according to Outrider Management's Steve Hope.
The deal priced with a spread of Treasuries plus 387 bps at the tighter end of its talk between 8.5% and 8.75%.
Hope called it a "great price performance in a tough market for a new issuer."
Hope's Brooklyn Bridge deal of the year was from IMPSA, Argentina's Industrias Metalúrgicas Pescarmona SAIC&F.
The $225 million of 11.25% notes priced on Oct. 12 from the Mendoza, Argentina-based wind and hydropower producer were "rushed, poorly placed and poorly supported," Hope said.
"The [OAO] Gazprom deals were priced pretty high; I only heard bad things about it," said ING's head of emerging markets strategy, David Spegel.
Still, the $1.25 billion deal of Aug. 8 priced at a time when others struggled to print deals.
Ghana received at least honorable mention from Jefferies & Co.'s head of emerging markets strategy, Erich Bauer-Rowe, but because of its size, PDVSA, or Petroleos de Venezuela SA, took the top honors, he said.
The Venezuelan state-run oil producer's April deal was upsized to $7.5 billion from $5 billion.
"It was impressive the market could absorb that size with such a controversial credit," he said.
In Eastern Europe, Gazprom stands out as a frequent and large issuer, he said, adding that it "will continue to be the commanding credit for Russian new issue business in 2008."
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