Televisa, Psalm, Digicel price; Poland's CEDC sets talk; EM rebounds from last week's sell off

By Christine Vandusen and Paul A. Harris

St. Louis, Nov. 23 - Emerging markets firmed on Monday as sentiment improved following the weakness seen during the latter part of last week, an emerging markets syndicate banker said after the New York close.

Prior to the New York open, five-year credit default swaps were mixed heading into the European close, with Argentina finishing the day 14.795 bps wider at 943.285 bps mid.

Russia closed at 192.095 bps mid, 0.11 bps wider, and Venezuela closed at 1,111.77 bps mid, 15.625 bps wider.

Brazil closed 3.08 bps tighter at 122.08 bps mid. And Mexico ended the day at 141.705 bps mid, 3.44 bps tighter.

Among corporates, OAO Gazprom finished Monday at 240.88 bps mid, 2.715 bps tighter. And Russia's VTB Bank closed at 343.555 bps mid, 5.46 bps wider.

Calling Monday's activity "dull as dishwater," a London-based trader said emerging markets were "stronger than Friday, but very quiet. Generally it's been a bit better. The market's a bit firmer. Equities are close to 2% better in the States now, Europe's more so."

The source blamed the quiet on the upcoming Thanksgiving holiday.

"It's a very fractured week. It's the last week before December, when everyone will be looking at the end of the year and holiday time. There are lots of reasons liquidity and activity are waning a little bit."

Still, it is possible that some issuers may try to squeeze in some pricing this week.

The London source pointed to Russia's AK Bars Bank, which is planning to offer new 10¼% loan participation notes to investors for cash alongside an exchange offer for its existing 8¼% loan participation notes.

"I guess they'll try to get that done in the next couple of days," the source said. "But it's not really a benchmark, and not on the radar of many people."

And other issuers may try to push some new deals through, the source added.

"The window is a ajar, so we might get something from a well known issuer who doesn't need any homework with investors," the London source said. "But you never know."

Televisa tight to talk

Mexico's Grupo Televisa priced an upsized $600 million issue of 6 5/8% 30-year notes (Baa1/BBB+/BBB+) at a 245 basis points spread to Treasuries, on Monday.

The deal came at the tight end of the Treasuries plus 250 bps price talk and the size was increased from $400 million.

The issue sold at a reoffer price of 98.318, resulting in a 6.755% yield to maturity.

Credit Suisse ran the books.

Proceeds will be used for general corporate purposes.

European and U.S. high-grade and emerging markets corporate bond investors played the Televisa transaction, according to a source close to the deal.

The accounts viewed the credit in the same context as Time Warner and Comcast, the source added.

The deal was seen trading at 242 bps bid, 238 bps offered, versus the 245 bps pricing spread, the source said.

Psalm prices $600 million

Power Sector Assets & Liabilities Corp. (Psalm) of the Philippines priced a $600 million issue of 15-year senior unsecured notes (Ba3/BB-) at par to yield 7.39% on Monday.

Morgan Stanley, UBS Investment Bank and Development Bank of the Philippines were the underwriters.

Proceeds will be used for general corporate purposes, including servicing payments as part of contracts with independent power producers.

Digicel prices $500 million

Caribbean wireless company, Digicel Ltd. priced a $500 million issue of 8¼% eight-year senior notes (B1//B-) at 98.625 to yield 8½% on Monday, in a trade that played to high-yield and emerging markets accounts.

The notes priced on top of talk.

Credit Suisse, Citigroup and JP Morgan were joint bookrunners for the quick-to-market sale.

Proceeds will be used to refinance the company's 9¼% notes due 2012, in what a syndicate source characterized as a debt-neutral deal that was "aggressively" priced.

TV Azteca launches at 8¾%

Mexican television network broadcaster, TV Azteca SA de CV launched a $40 million offering of unsecured notes due Dec. 10, 2010 at 8¾% on Monday, according to a market source.

The notes are linked to the Mexican peso.

BCP Securities is the bookrunner.

The notes had been talked at 8¾% to 9%.

Central European talks $870 million

Poland's Central European Distribution Corp. (CEDC) set price talk for its $870 million equivalent offering of seven-year senior secured notes (B1/B+) on Monday.

The dollar-denominated tranche of notes is talked at the 9¼% area. The euro-denominated tranche is talked at the 9% area.

The books close at 6 a.m. ET on Tuesday, with pricing to follow at the New York open.

The Rule 144A for life deal is being led by left bookrunner Goldman Sachs & Co.

Citigroup and Deutsche Bank Securities are joint bookrunners.

Central European Distribution is an alcoholic beverage producer and distributor with corporate offices in Warsaw, Poland, and Bala Cynwyd, Pa.

Proceeds from the bonds and stock will be used to purchase Lion Capital's remaining stake in Russian Alcohol Group and to repay debt, including Central European Distribution's outstanding secured notes due 2012.

First Ship roadshow starts Wednesday

Singapore-based First Ship Lease Trust will start a roadshow on Wednesday for its $200 million offering of seven-year senior notes (/B+/BB-).

Management will meet with investors in Singapore, Hong Kong and London, as well as in the United States.

The deal is set to price next week.

JP Morgan and Jefferies & Co. are joint bookrunners for the Rule 144A for life deal.

Proceeds will be used to repay bank debt and fund vessel acquisitions.

© 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.