Latam Airlines launches $700 million seven-year offering; Venezuela, Mexico, Colombia quiet

By Colin Hanner

Chicago, April 6 – New and recent issues continued to dominate the emerging market space into the afternoon on Thursday, with Chile’s Latam Airlines Group SA launching, but not pricing as of press time, a $700 million offering of seven-year notes to yield 6 7/8%.

Yield talk had been in the 7% area, a market source said.

New issues were getting the bilk of attention in the Latin American space, a market source said, adding that it is still reasonably constructive despite equity volatility in world markets.

Secondary markets, on the other hand, were not as active.

“There’s not a lot of news to drive the secondary market,” the source said.

A market source characterized Mexican and Colombian markets as “very quiet.”

Columbia’s 4 3/8% notes due 2021 were quoted at 106 bid, 106½ offered. And its 4% notes due 2024 were quoted at 102.95 bid, 103.45 offered.

In Mexico, “dealers appeared to be on the short side” despite it being quiet, a market source said.

Venezuela’s bonds were mixed on the session.

Its 7% notes due 2018 were quoted with a 67½ bid, 68½ offer, down around 1 point. Its 12¾% notes due 2022 were quoted with a 57½ bid, 58½ offer, around flat. And its 9¼% notes due 2027 had a 47¾ bid, 48¾ offer, up 1¾ points to its last mark.

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