Paraguay’s Telecel prices; new Klabin notes weaker; stronger flow eyed for next week

By Rebecca Melvin

New York, March 29 – The emerging markets debt market ended the week, month and quarter on solid footing although this week’s tone was decidedly weaker than the previous one, according to market sources.

“I think the shift this week was a function of global economic growth worries related to the weaker manufacturing [data] in the U.S. and Europe, which added to investor worries, and the rate inversion last Friday that led to risk-off sentiment,” a New York-based market source said.

Nevertheless, word on pricing of Telefonica Celular del Paraguay SA’s (Telecel) $300 million of 5 7/8% notes hit the tape after the 2027 notes priced at par.

Telefonica Peru is a second telecommunications company on the calendar for pricing for the Latin American region next week.

Other than the Telefonica deal, there were no deals announced for pricing next week in Latin America, but there are deals in the pipeline that might mean a busy week, the market source said.

The new Klabin SA $1 billion of 2029 and 2049 notes were a casualty of this week’s pension headlines and the generally weaker market overall. The Sao Paulo based pulp and paper company’s new 7 1/8% notes due 2029, which was a deal of $500 million size, were recently seen off by 1/8 point at about 99.5 after the deal priced at 99 5/8.

© 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.