Morning Commentary: Maxima Grupe launches euro deal; Latvia prices reopening of notes

By Rebecca Melvin

New York, Sept. 6 – Maxima Grupe UAB braved the fraught emerging markets debt market on Thursday with the launch of a €300 million offering of senior unsecured bonds to yield 3½%. Its notes deal could price as soon as Thursday.

The deal for the Lithuania-based retail chain comes on the heels of a tap for €300 million in dual tranches for the Republic of Latvia.

But Suzano Papel e Celulose SA was heard to be postponing pricing of its benchmark sized dollar-denominated Rule 144A and Regulation S offering of senior unsecured notes, which wrapped up roadshow meetings on Wednesday.

The Brazilian pulp and paper company, which is an investment-grade company, is viewed as a good candidate to reopen the Latin America new issue market that has been moribund since the middle of July. But as of early Thursday, the issuer was expected to continue to monitor market conditions and may try to price the deal next week.

“What we’ve heard it that it’s not happening today,” a New York-based market source said.

The issuer wasn’t satisfied with pricing action in recent sessions and is in no particular rush to issue. But at the same time the deal, which has been talked at two series of 2030 and 2049 notes, is expected to perform well once it does price, the source said.

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