Codelco prices $1.3 billion notes; Latam Airlines eyes notes; pressure on Maduro mounts

By Rebecca Melvin

New York, Jan. 28 – Corporacion Nacional del Cobre de Chile, or Codelco, priced $1.2 billion of 4 3/8% notes (expected ratings: A3/A+/) at 93.054 on Monday to yield 4.815%, or a yield spread of U.S. Treasuries plus 175 basis points, according to a syndicate source.

Chile’s Latam Airlines Group SA has mandated banks and scheduled fixed-income investor meetings for a planned offering of dollar-denominated of notes (expected rating: //B+), a market source said on Monday.

The United States announced new sanctions against PDVSA on Monday, a move that is in addition to existing sanctions against Venezuelan individuals in government that limits PSVSA’s transactions with people in the United States. The sanctions did not go so far as to sanction PDVSA from selling to U.S. refineries.

At the same time, Venezuela’s opposition leader, Juan Guaido, who proclaimed himself president of the country last week, said that he has ordered the Venezuelan congress to put a new board of directors in place over the state-owned oil company. The new board will also preside over Citgo, PDVSA’s U.S. oil refining subsidiary.

The move comes as the ruling president, Nicolas Maduro appears to be doubling down on his hold of the government, and he still controls the military and PDVSA. He is calling efforts to make him step down a coup attempt.

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