MHP, PhosAgro, KOKS Finance to price soon; Senegal eurobond ahead; Saudi sovereigns inch up

By Colin Hanner

Chicago, April 18 – With markets fully open after an elongated Easter weekend for many parts of the globe, several new deals were whispered to be coming to market next week and weeks following.

MHP SA plans to start a three-day roadshow for an offering of six- or seven-year notes, with the size of the deal yet to be determined, a market source said.

The new notes are part of a refinancing that includes a cash tender offer for up to $350 million of the company’s $750 million 8¼% notes due 2020, the company said. The size of the deal will depend on the tender results, a market source said.

A two-team roadshow is expected next Monday, Tuesday and Wednesday, with the first team holding meetings in London, Boston and New York, a market source said. The second team will be in Switzerland, Amsterdam, Frankfurt and London during those days.

The notes are expected to price prior to early results of the tender offer, which has an early tender deadline of 3 a.m. ET on April 27.

The purpose of the tender offer is to lengthen the company’s debt maturity profile by refinancing the tendered notes with the new unsecured and unsubordinated notes.

J.P. Morgan Securities plc and ING Bank NV are the joint dealer managers for deal.

The issuer is a Kiev, Ukraine-based agriculture-industrial company.

PhosAgro expected to price

Russian chemical holding company PhosAgro announced a mandate for investor meetings for a new dollar-benchmark deal, a market source said.

Citibank, Sberbank and BNP Paribas are the global coordinators for the deal.

On Tuesday, Moody’s Investors Service and Fitch Ratings assigned ratings to proposed senior unsecured dollar-denominated loan participation notes.

Moody’s gave the proposed notes a Ba1 rating, while Fitch gave the notes a BB+ rating.

Fitch said the proposed issuance is $500 million and had major terms and conditions identical to the outstanding $500 million loan participation notes due 2018.

Moody’s expects that the proceeds will be primarily used for repayment of part of PhosAgro’s existing bank debt, while Fitch added general corporate purposes will also account for part of the proceeds.

KOKS Finance to offer notes

KOKS Finance DAC is expected to price new loan participation notes as a part of a refinancing that includes a cash tender offer for holders of its 10¾% notes due 2018, the company said.

The terms of the new notes will be made on or before May 5, the settlement date for the tender offer.

The purpose of the new notes would be to finance a loan to the company.

The company launched a cash tender offer for any and all of its $201,345,000 of 10¾% notes due 2018.

Citigroup Global Markets Ltd., Renaissance Securities (Cyprus) Ltd., JSC Sberbank CIB, SIB (Cyprus) Ltd. and VTB Capital plc are the joint dealer managers for the tender offer.

KOKS Finance is a subsidiary of KOKS Group, a Moscow-based merchant coke and pig iron producer.

Senegal plans eurobond

Senegal finance minister Amadou Ba said on Friday the country will issue a eurobond in the coming weeks, according to several media reports.

Proceeds of the bond will be used to finance infrastructure spending in the country.

On Friday, Moody’s Investors Service upgraded the long-term issuer and senior unsecured debt ratings of the government to Ba3 from B1 and changed the outlook to stable from positive.

Moody’s cited higher economic growth, continuous fiscal consolidation to do with the country’s budget structure and favorable government debt metrics.

In 2014, Senegal sold $500 million 10-year notes (B1/B+) at par to yield 6¼%.

In the earlier bond issue, Citigroup, Societe Generale CIB and Standard Chartered Bank were the bookrunners. The notes were priced via Rule 144A and Regulation S.

Saudi sovereigns inch higher

On Tuesday, Saudi Arabia’s sovereign bonds climbed fractionally on the session.

Its 2 3/8% notes due 2021 were quoted with a 98.15 bid, 98.27 offer in the morning session, ascending to a 98.22 bid, 98.37 offer later in the day.

And its 3¼% notes due 2026 were quoted with a 97.37 bid, 97.62 offer, 5 basis points higher compared to the morning.

PDVSA mixed

Movement was contained within a 1-point range for several of Petroleos de Venezuela’s bonds on Tuesday.

PDVSA’s 8½% notes due 2017 were up ¾ point to a 91 bid, 92 offer.

The 9% notes due 2021 were down ¼ point to a 54 bid, 55 offer, paring gains from Monday’s session.

And the 6% notes due 2024 also down a ¼ point to a 39 bid, 40 offer.

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