TNK-BP preps benchmark dollar deal; Minerva to price $250 million this week; EM trades flat

By Paul A. Harris

St. Louis, Jan. 19 - Emerging markets debt traded flat on Tuesday, sources said.

Heading into the U.S. East Coast afternoon, a Boston-based asset manager saw emerging markets a little tighter, but chalked that up to movement in U.S. Treasuries.

Index measures were flat, the buy-sider said.

The EMBI-Plus index was at 281 basis points bid, 5 bps tighter on a spread basis. However it was flat on a total return basis, the source added.

Earlier, at the close of the European session, a London-based trader saw the market "slowing down."

TNK-BP to bring benchmark

Russian oil giant TNK-BP Ltd. will begin a roadshow on Friday for a benchmark-sized, dollar-denominated offering of notes

. The roadshow will continue into next week.

Barclays Capital, Calyon Securities and RBS are leading the deal.

At the European close the company's existing bonds were 6 to 7 bps wider on news of the deal, according to a London-based trader.

Hyundai Card starts marketing Wednesday

Meanwhile Hyundai Card Corp. will begin a roadshow for a global bond offering on Wednesday, according to a market source.

Barclays Capital is leading the deal from the credit card unit of Seoul, South Korea-based Hyundai Motor Group.

Minerva slates $250 million

Brazil food processing company, Minerva Overseas II Ltd. plans to price a $250 million offering of 10-year senior fixed-rate notes (confirmed B3/expected B-/expected B) this week.

Goldman Sachs & Co. and BB Securities are joint bookrunners for the Rule 144A/Regulation S notes offer.

Proceeds will be used to refinance debt.

Minvera expected in 11% range

The Minerva deal is expected to come with a yield in the range of 11%, according to an emerging markets fund manager.

Earlier the company tested the waters, whispering a deal at 10½%, but found the market was not interested at that level, the manager said.

"Now these guys are more concerned with having the money in hand, than they are with squeezing out every last basis point of yield," the source added.

Javer prices tap

Elsewhere on Tuesday, Mexican property development company, Servicios Corporativos Javer, SAPI de CV, priced a $30 million add-on to its 13% senior unsecured notes due Aug. 4, 2014 (//BB-) at 109.50, resulting in a yield of 10.308%.

Proceeds will be used to refinance debt and for general corporate purposes.

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