Emerging markets steady; Steinhoff, Nostrum price; Venezuela flat, up slightly after vote

By Rebecca Melvin

New York, July 17 – Emerging markets were steady on Monday with a couple of deals pricing that had been on the forward calendar for most of the month. Secondary markets were mostly quiet but firm, sources said.

The bonds of Venezuela and its state-owned oil company Petroleos de Venezuela were flat to higher by about ¼ point in quiet trade after an opposition vote on Sunday in which 7.6 million Venezuelans cast ballots against president Nicolas Maduro’s plan to install a constituent assembly that would be given a mandate to rewrite the country’s constitution.

Among new deals that priced were Steinhoff International Holdings NV’s upsized €800 million of 1 7/8% notes due 2025 that came slightly below par to yield mid-swaps plus 130 basis points, and Nostrum Oil & Gas plc’s $725 million of 8% notes due 2022 that priced at par.

Steinhoff’s new notes were to be used primarily to repay debt, and Nostrum is concurrently tendering for its Zhaikmunai LLP 7 1/8% senior notes due 2019 and 6 3/8% senior notes due 2019.

DAE Funding LLC’s planned $1.9 billion two-part offering of senior notes, announced last week, was talked on Monday at a 4¾% to 5% coupon for the benchmark tranche of five-year notes, and at a 5 1/8% to 5 3/8% coupon for the seven-year notes, also described as a benchmark tranche.

The Rule 144A and Regulation S notes are expected to price later this week.

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