Maxima Grupe prices €300 million notes; Suzano holds off on dollar deal to monitor markets

By Rebecca Melvin

New York, Sept. 5 – Maxima Grupe UAB braved the fraught emerging markets debt market on Thursday, pricing a €300 million offering of senior unsecured bonds to yield 3½%.The deal for the Lithuania-based retail chain comes on the heels of a tap on Wednesday for €300 million in dual tranches for its Baltic neighbor, the Republic of Latvia.

But Suzano Papel e Celulose SA is holding off pricing a benchmark-sized offering of dollar-denominated senior unsecured notes, which wrapped up roadshow meetings on Wednesday. The Rule 144A and Regulation S deal is now expected to price next week at the earliest.

The Brazilian pulp and paper company, which is an investment-grade credit, is viewed as a good candidate to reopen the Latin America new issue market, which has been moribund since the middle of July. But the issuer will continue to monitor market conditions this week and possibly price next week.

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

The company was not satisfied with this week’s pricing action and is in no particular rush to issue, the source said. But at the same time the deal, which has been talked at dual series of 2030 and 2049 notes, is expected to perform well once it does price, the source said.

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