Morning Commentary: TeleCel prices; Klabin weaker; stronger flow eyed for April 1 week

By Rebecca Melvin

New York, March 29 – The emerging markets debt market was closing out the week, month and quarter on a quietish note on Friday.

Word on pricing of Telefonica Celular del Paraguay SA’s (TeleCel) $300 million of 5 7/8% notes hit the tape after the 2027 notes priced at par. The proceeds will be used to finance the company’s tender offer for its 6¾% notes due 2022.

TeleCel is a communications company based in Fernando de la Mora, Paraguay.

Telefonica del Peru SAA is a second telecommunications company on the calendar for pricing for the Latin American region next week.

Klabin SA’s new notes were slightly weaker in a market that was generally softer overall after the Sao Paulo-based pulp and paper company priced $1 billion of senior notes in two tranches due 2029 and 2049 on Wednesday.

The Klabin issue also contended with a Brazilian market what was hit by news that the country’s pension reform plan may have hit a snag, a New York-based market source said.

The new Klabin 7 1/8% notes due 2029 were recently seen off by 1/8 point at about 99.5 after the deal priced at 99 5/8.

Other than the Telefonica deal, there were no deals announced for pricing next week in Latin America, but there are deals in the pipeline that might create heavy market flow next week, the market source said.

Conversations among market players suggest that it could be a crowded, busy week, the source said.

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