Odebrecht prices upsized $500 million; books close for Sri Lanka's $500 million; EMBI tighter

By Paul A. Harris and Christine Van Dusen

St. Louis, Oct. 14 - The EMBI-Plus index was heading out from Wednesday's session at tighter levels late, at 289 bps bid, versus the Tuesday close of 302 bps bid, a buy-side source said.

Meanwhile the emerging markets primary continued to generate news.

Odebrecht upsizes

Odebrecht Finance Ltd. (Odebrecht SA) priced an upsized $500 million issue of 7% senior notes due April 21, 2020 (/BB/BB+) at 98.184 to yield 7¼% on Wednesday.

The yield printed at the tight end of revised talk of 7¼% to 7 3/8%. It had been lowered from the original 7½% area talk.

HSBC, Santander and BB Securities were the lead managers for the issue which was upsized from $300 million.

Sri Lanka books closed

The order books closed late Wednesday afternoon ET for Sri Lanka's $500 million offering of five-year global bonds (//B+), according to a buy-side source.

Guidance on the deal is for a 7¾% yield.

JP Morgan, HSBC and RBS Securities are leading the offer.

The deal was seeing strong demand, according to a London-based trader who spoke after the close of the European session.

Adaro whispered at low 8% range

The roadshow for PT Adaro Energy Tbk./PT Adaro Indonesia's benchmark-sized, dollar-denominated 10-year senior guaranteed notes (Ba1//BB+) wraps up Thursday in Boston.

No official price talk had been heard, according to a portfolio manager who spoke to Prospect News early Wednesday afternoon.

However the whisper on the deal is that it will come in the low 8% range, the buy-sider said.

Credit Suisse, Deutsche Bank Securities and UBS AG are joint bookrunners for the Rule 144A and Regulation S deal from the Jakarta, Indonesia, coal mining company.

Korea Expressway possible for Thursday

Nor was official price talk available on the Korea Expressway Corp. benchmark-sized dollar-denominated offering of global medium-term notes (A2), according to a market source.

However that deal, the latest in a growing parade of quasi-sovereigns from Korea, is expected to come around 250 bps over Treasuries, according to the whisper, the source added.

The dealers are believed to have it teed up for a Thursday pricing.

Bank of America Merrill Lynch, Deutsche Bank, HSBC and Korea Development Bank are managing the sale.

Controladora Mabe hires bookrunners

Controladora Mabe, SA de CV has mandated Bank of America Merrill Lynch and HSBC as joint lead arrangers for a dollar-denominated, Rule 144A and Regulation S bond offering (expected ratings /BBB-/BBB-), according to a market source.

The transaction will be launched subject to market conditions and preceded by a roadshow in Europe and the United States.

Controladora Mabe is a manufacturer and distributor of white line products, based in Col. de Valle, Mexico.

KfW announces rupiah offer

KfW Bankengruppe is planning to issue an Indonesian rupiah-denominated offering of three-year notes payable in U.S. dollars, according to a Tuesday filing with the Securities and Exchange Commission.

The size remains to be determined. The deal, run by Deutsche Bank Securities, is expected to settle by the end of the month.

KfW Bankengruppe is a banking company based in Frankfurt, Germany.

Trader expects Naftogaz restructuring to go forward

Naftogaz is expected to proceed with plans to exchange its $500 million eurobond for new 9½% dollar-denominated notes now that one hold-out owner has "decided to move forward and join the restructuring," a London-based trader told Prospect News on Wednesday.

The old bonds don't appear to be trading much at this point, and were last seen by the trader at a price in the high 80s.

The Ukraine energy company defaulted on the old bonds at their maturity on Sept. 30, making a coupon payment but not paying the principal.

Last week holders of 92% of Naftogaz eurobonds voted to support the bond restructuring. Now that a hold-out account has capitulated, the trader expects the restructuring should go through and information on pricing for the new bonds, which would be due September 2014, should surface soon.

A formal bondholders meeting is scheduled for Oct. 19.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.