Greece, Goldman Sachs concerns eyed; Panamericano prices; BicBanco, New World set price talk

By Christine Van Dusen

Atlanta, April 19 - Greece's debt problems and Goldman Sachs' legal troubles weighed on investors' minds on Monday as they digested last week's fairly significant supply of new issuance in emerging markets, particularly from Latin America, market sources said.

"The tone is cautious," a London-based trader said.

That's due in part to Greece's continuing troubles. An important meeting about a bailout plan for the debt-saddled sovereign was postponed Monday after volcanic ash in the air canceled travel for many E.U. and International Monetary Fund officials.

As a result, "Greece bonds can't catch their footing," a New York-based investment source said.

Another problem on Monday was the recent turmoil at Goldman Sachs, which has been sued for fraud related to collateralized debt obligations. The legal action alleges that at the start of the U.S. housing crisis in 2007, the investment bank misrepresented information about CDOs connected to subprime mortgages.

The Goldman Sachs situation "has sort of tempered a lot of the massive one-way bullishness of the last week or so," the New York source said. "It seems like a few negatives we thought would go away are popping up their heads."

In response, five-year credit default swaps on Monday rose in Asia. And in Russia, "spreads are 5 to 10 basis points wider across the region on Goldman Sachs concerns," the London trader said.

Russia holding roadshow

Meanwhile the Russian Federation was marketing its planned offering of five- and 10-year dollar-denominated eurobonds in Los Angeles Monday. This followed a trip through Europe and Asia last week.

The roadshow - via Barclays Capital, Citigroup, Credit Suisse and VTB Capital - continues Tuesday in San Francisco and wraps up Wednesday in New York.

Also on Monday, Amsterdam-based central European coal producer New World Resources Corp. talked its €475 million offering of eight-year senior secured notes with a yield in the 8% area, according to a market source.

The New World offering could price as soon as Tuesday.

Trading volume light

Volume on Monday was, in general, "extremely light," the New York source said.

Mexico was "pretty well bid here, probably unchanged to slightly better on the day," he said. "It's plus or minus an eighth or a quarter, not super-reactive to this little burst in the equity market."

There appeared to be a little bit of pressure with "Brazil's new issue and supply overhang," he said.

Brazil upsized to $787.5 million from $750 million its 4 7/8% global bonds due Jan. 22, 2021, which priced at 98.978 to yield 5%, or Treasuries plus 115.6 bps.

Also on Monday, Brazil's Banco Panamericano SA priced $500 million tier 2 notes due April 2020 to yield 8 5/8%.

And another Brazilian issuer, Banco Industrial E Comercial SA (BicBanco) set price guidance for its planned dollar-denominated offering of 10-year tier 2 notes at 8¾%, according to a market source.

Latin America still busy

The latest deals add to an already hefty list of priced and planned issues from the region, including Brazil-based Banco Bradesco SA, which last week priced $250 million 3 1/8% senior notes due 2013 at 99.711 to yield Treasuries plus 160 bps.

Last week also saw pricing for Sociedad Quimica y Minera de Chile SA's upsized $250 million 5½% senior notes due 2020 at 99.817 to yield 5.524%, or Treasuries plus 170 bps.

Then there was Banco Santander Chile's pricing of $500 million floating-rate senior notes due 2012 at par to yield Libor plus 125 bps.

And Mexico's Grupo Financiero BBVA Bancomer SA priced $1 billion tier 1 notes due 2020 at par to yield 7¼%, or Treasuries plus 341 bps.

"Mostly it just seems like we're digesting supply from last week," the New York source said. "That's the mode we're in."

Panamericano prices notes

Brazil's Banco Panamericano priced $500 million tier 2 notes due April 2020 to yield 8 5/8%, according to an informed market source.

Other pricing details were not available Monday.

Bradesco BBI, Itau, Standard Bank and UBS were the bookrunners for the Rule 144A and Regulation S deal, which had a roadshow in Asia, Europe and the United States from April 12 to April 15.

Banco Panamericano is a Sao Paulo-based bank.

BicBanco sets guidance

Brazil's Banco Industrial E Comercial set price guidance for its planned dollar-denominated offering of 10-year tier 2 notes (expected Ba2) at 8¾%, according to a market source.

HSBC, JPMorgan and Standard Chartered are the bookrunners for the Rule 144A and Regulation S offering, which had a roadshow in Asia, Europe and the United States from April 13 to April 15.

BicBanco is a Sao Paulo-based lender.

New World talks notes

New World Resources talked its €475 million offering of eight-year senior secured notes (Ba3/BB-) with a yield in the 8% area on Monday, according to a market source.

The Rule 144A and Regulation S note offering is set to price as soon as Tuesday morning.

Goldman Sachs & Co. is the left bookrunner. JPMorgan and Morgan Stanley are joint bookrunners. Bayern LB, Citigroup and Erste Bank are co-managers.

The notes come with four years of call protection.

Proceeds will be used to refinance bank debt.

The company is an Amsterdam-based central European coal producer.

Russia roadshow ends Wednesday

The Russian Federation (Baa1/BBB/BBB) will end its roadshow for a planned offering of five- and 10-year dollar-denominated eurobonds on Wednesday in New York, according to a market source.

The marketing trip started April 13 and traveled through Europe and Asia before hitting Los Angeles on Monday and San Francisco on Tuesday.

Barclays Capital, Citigroup, Credit Suisse and VTB Capital are the bookrunners for the Rule 144A and Regulation S deal.

Paul A. Harris contributed to this report

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