Pacific Rubiales taps 7¼% notes; Yapi prices $500 million; EM seen wider on the day

By Paul A. Harris

Portland, Ore., Nov. 25 - Pacific Rubiales Energy Corp. jumped into the Monday market, pricing a $300 million add-on to its 7¼% notes due 2021 (expected ratings: Ba2/BB+/BB+) at 105 to yield 6¼%, on top of initial guidance.

The add-on came two points lower than Friday's close, according to a market source who added that the Pacific Rubiales' 7¼% notes underperformed the rest of the curve on Monday, closing 105¼ bid, 105 3/8 offered.

In the high-grade space, Yapi ve Kredi Bankasi (Baa2/BBB) priced a $500 million issue of 5¼% five-year senior notes at a 395 basis points spread to mid-swaps, tight to the 415 bps initial guidance.

High-grade spreads were seen as much as 5 bps wider on the session, with Brazilian banks the clear underperformer as they await a landmark Supreme Court ruling on disputes with account holders dating back to the 1980s and 1990s.

Elsewhere in the Latin American space, Mexico and Brazil drifted wider amid muted volumes. They closed 6 bps to 9 bps wider across the curve, a source said, adding that liquidity in emerging markets debt is apt to remain low for the remainder of the pre-Thanksgiving week, and indeed could remain low throughout the run-up to 2014.

Pacific Rubiales 7¼% notes

Colombia-focused Pacific Rubiales Energy Corp. priced a $300 million add-on to its 7¼% notes due 2021 at 105 to yield 6¼%.

The reoffer price came on top of initial guidance.

Joint bookrunner and joint lead manager BofA Merrill Lynch was the global coordinator and will bill and deliver.

Citigroup, HSBC, Itau and BBA were also joint bookrunners and joint lead managers.

The Toronto-based oil and gas exploration and production company plans to use the proceeds for general corporate purposes.

Yapi comes tight to guidance

Turkey's Yapi ve Kredi Bankasi priced a $500 million issue of 5¼% five-year senior notes at a 395 bps spread to mid-swaps, tight to the 415 bps initial guidance.

Joint bookrunner BofA Merrill Lynch will bill and deliver. BNP, Citigroup, HSBC and UniCredit were also joint bookrunners.

AES Gener taps Citi, Goldman

Chilean electrical distributor AES Gener (Ba2/BB/BB) mandated Citigroup Global Markets and Goldman Sachs & Co. to conduct a roadshow ahead of a prospective junior subordinated capital offer.

The roadshow starts Dec. 2 in Los Angeles, moves to Boston on Dec. 3 and will be in New York on Dec. 4 and 5.

Details about the deal will also be made available by means of a net roadshow.

The company is based in Santiago.

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