America Movil launches $2.25 billion of notes in line with existing valuation; China Evergrande prices add ons

By Rebecca Melvin

New York, April 15 – America Movil SAB de CV launched $2.25 billion of notes due 2029 and 2049, with yield spreads 20 basis points to 25 bps tighter than initial price talk, in line with existing notes and slightly wide to its global sector, according to market sources on Monday.

The deal for the Mexico City-based telecommunications company is Securities and Exchange Commission registered, and final pricing was expected to occur late Monday.

The $1 billion of 10-year notes launched to yield U.S. Treasuries plus 115 bps. That pricing was on the tight end of guidance for yield of Treasuries plus 120 bps, +/- five bps and initial price talk of Treasuries plus 135 bps area.

The $1.25 billion of 30-year notes priced to yield Treasuries plus 145 bps. That pricing was at the tight end of guidance for yield of Treasuries plus 150 bps, +/- five bps and initial talk at Treasuries plus 165 bps area.

According to a market source, the new notes priced on top of America Movil’s existing valuation, with the 10-year tranche also pricing 10 bps wide of average global technology, media and telecommunications 10-year paper.

The 30-year tranche priced right in line with existing America Movil paper and 25 bps wide of the average spread on global TMT 30-year paper.

The terms represent best pricing for America Movil, and “buyers get a new, liquid issue, but with no excess spread, I suspect, limited post-launch price upside,” the New York-based source said.

Joining the calendar for Latin America issuance is Empresa de Transmision Electrica, SA's proposed U.S.-dollar amortizing senior unsecured notes with a tenor of up to 30 years.

The electricity transmission company in Panama is wholly owned by the government. Proceeds of the 144A Regulation S notes are expected to be used to refinance and consolidate current outstanding debt.

The new deals represent continuation of what was an active primary market for Latin America last week, with issues new to the market on Friday including Peru’s Consorcio Transmantaro SA and Panama’s Global Bank Corp.

Elsewhere in emerging markets debt, China Evergrande Group priced $1 billion of senior notes as add-ons (B2/B) to three existing tranches of debt priced last week.

The real estate development company priced $200 million additional of its 9½% senior notes due 2022, $400 million of 10% senior notes due 2023 and $400 million of 10½% senior notes due 2024.

With the add-ons, there are now $1.45 billion of the notes due 2022, $850 million of the notes due 2023 and $700 million of the notes due 2024. The original tranches priced April 11.

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