Wind Acquisition, Nomos-Bank, Minmetals, San Miguel sell notes; PDVSA up; spreads mixed

By Christine Van Dusen

Atlanta, April 19 - Wind Acquisition Finance SA, Russia's OAO Nomos-Bank, China's Minmetals Land Capital Ltd. and Philippines' San Miguel Corp. sold notes on Friday amid mixed spreads as Petroleos de Venezuela's (PDVSA) bonds moved up on news of an upcoming election recount.

The day also saw two Russian issuers, Credit Bank of Moscow and OJSC MMC Norilsk Nickel, prepping new deals for the market.

The Markit iTraxx SovX CEEME ex-EU index on Friday moved 3 basis points tighter to 193 bps over Treasuries. The corporate index - seen Thursday at 232 bps over Treasuries - moved 1 bp wider to 233 bps over Treasuries.

"Pockets of activity today, but obviously a Friday is pretty much a non-event," a London-based trader said.

This was particularly true in the United States, where investors were glued to their televisions, awaiting news on the manhunt for the remaining Boston Marathon bomber.

Perpetual notes, particularly those from Abu Dhabi Islamic Bank, did manage to see some activity on Friday. After recently pricing at par, the notes traded Friday at 106 3/8. Dubai Islamic Bank's perpetual notes closed at 102.05 after also pricing at par.

"It felt like there was a little paper around on long-dated Qatar as the 2042s close at 126 offer," the London trader said. "Yesterday and today it felt like the Middle East and North Africa were taking a backseat to Russia and Turkey, where there was some solid flow."

QNB, SIB trade below par

Bank paper from the Middle East remained solid and "increasingly hard to source," he said.

"I generally like lower dollar-priced assets that can benefit from people looking to put cash to work," he said.

He pointed to Qatar National Bank's 2018s, Bank Muscat's notes and Sharjah Islamic Bank's 2018s, which were all trading below par.

Emirates airline's 2025s that traded two weeks ago at about 99 closed Friday at between 98 and 981/2.

Wind prices notes

In its new deal, Wind Acquisition Finance, part of Russia-based Vimpelcom (VIP) subsidiary Wind Telecomunicazioni SPA, priced dollar notes due April 29, 2020 and euro notes due April 30, 2019, a market source said.

The $550 million tranche of 6½% notes due 2020 priced at par to yield 6½%, or Treasuries plus 125 bps.

The €150 million issue of 2019 notes also came to the market at par to yield Euribor plus 525 bps.

BNP Paribas, Banca IMI, Societe Generale, UBS and UniCredit were the bookrunners for the Rule 144A and Regulation S deal, the proceeds of which will be used to repay bank debt.

Nomos-Bank sells bonds

In another new deal on Friday, Russia-based Nomos-Bank sold $500 million 7¼% notes due 2018 at par to yield 7¼%, according to a company announcement.

The notes were talked at a yield in the low-7% area.

Citigroup, JPMorgan and VTB Capital were the bookrunners for the Rule 144A and Regulation S deal.

New deal from Minmetals

China-based property company Minmetals Land Capital Ltd. printed a $350 million two-part issue of notes due April 16, 2018 and 2023, with both tranches coming to the market at par, a market source said.

The deal included $225 million 5½% notes due 2018 that priced to yield 5½% and $125 million 6½% notes due 2023 that priced to yield 6½%.

BNP Paribas, UBS, HSBC, Morgan Stanley and Bank of China were the bookrunners for the Regulation S deal.

The proceeds will be used to fund new and existing property projects and for general corporate purposes.

San Miguel oversubscribed

Philippines-based beer producer San Miguel priced an $800 million issue of 4 7/8% notes due April 26, 2023 at 99.414 to yield 4.95%, according to a source close to the deal.

The notes priced tighter than talk, set at 5 1/8%.

ANZ, Standard Chartered Bank, BofA Merrill Lynch, DBS Bank, Deutsche Bank and Standard Chartered Bank were the bookrunners for the Regulation S-only deal.

The final book was more than $4.5 billion from 250 accounts, with 69% from Asia, 28% from Europe and 3% from the offshore United States.

Private banks picked up 49%, asset managers 26%, banks 12%, insurance 6% and corporates and others 7%.

PDVSA regains ground

Venezuela-based PDVSA's bonds moved up Friday on news of an upcoming recount in Venezuela's contentious presidential election.

A trader saw PDVSA's 8½% notes due 2017 rise nearly 1½ points to 96.9, while the 9¾% notes due 2035 gained almost 2 points to 94 7/8.

On Friday, Standard & Poor's said it had revised the nation's outlook to negative from stable, citing the political uncertainty and how that might impact economic policy and its implementation.

Homex rises on prison sale

Mexico-based Corporacion GEO SAB de CV's bonds jumped 17 to 21 points on the day after the company agreed to sell its stakes in federal prisons located in Morelos and Chiapas to infrastructure firm Impulsora del Desarrollo y el Empleo en America Latina SAB.

Homex is expected to raise $327 million from the sale. A closing date was not disclosed.

A trader saw the 9¾% notes due 2020 put on at least 17 points, trading in a 79 to 80 context on Friday. That compared to levels in the high-50s on Thursday, he said.

The 7½% notes due 2015 and the 9½% notes due 2015 were meantime seen up over 21 points at 86½ and 811/2, respectively.

Last week, Homex said it was looking at ways to raise cash in order to shore up liquidity. Proceeds from the prison stake sale will be used for such purposes and to pay down debt.

Credit Bank of Moscow roadshow

Russia's Credit Bank of Moscow has mandated bookrunners for a dollar-denominated issue of notes and a roadshow that will begin April 22, a market source said.

And Russia-based Norilsk Nickel is planning a marketing trip for an issue of eurobonds.

Polyus Gold prints notes

On Thursday, Polyus Gold International Ltd. printed a $750 million issue of 5 5/8% notes due April 29, 2020 at par to yield 5 5/8%, according to a company announcement.

JPMorgan, Societe Generale and VTB Capital were the bookrunners for the deal.

The proceeds will be used for general corporate purposes.

London-based Polyus is a gold producer with mines in Russia and Kazakhstan.

Creative Group in focus

One market source was taking a closer look on Friday at the upcoming issue of notes planned by Ukraine-based agro-industrial company Creative Group.

The company has mandated BofA Merrill Lynch, Citigroup, UniCredit and VTB Capital as bookrunners for a roadshow to market a $400 million issue of notes.

The marketing trip for the Rule 144A and Regulation S deal will end April 24 in New York.

"Credit metrics are on the weaker side, versus its peers," a trader said. "Most of the proceeds will be used to refinance, with $56 million used for general corporate purposes."

MMK deal ahead

The trader also was keeping an eye on Russia-based steel producer OJSC Magnitogorsk Iron and Steel Works' (MMK) upcoming issue of eurobonds.

A roadshow will be held next week for a Rule 144A and Regulation S deal.

"The proposed bond could be viewed as an opportunistic issue to address its debt maturities, with short-term debt of $1.6 billion," she said.

Stephanie N. Rotondo contributed to this article.

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