Banco Santander Chile, AlphaCredit price; Venezuela CDS auction settles; market quiet

By Rebecca Melvin

New York, Dec. 12 – A pair of deals for the Latin America region priced on Tuesday, representing some of last new issues of 2017 as the primary window was essentially closing for the holiday season and yearend, market sources said.

The deals were meant to get squeezed in ahead of Wednesday’s news from the U.S. Federal Reserve on a potential rate hike and setting its policy course for 2018.

Banco Santander Chile SA priced an offering of $500 million of 2½% three-year notes to yield 2.669% and Mexico’s Alpha Holding SA de CV priced $300 million of 10% five-year notes at par.

Santander Chile priced at 99.516 for a yield spread of 72 basis points over U.S. Treasuries.

Meanwhile, an auction of credit default swap contracts for two Venezuela bonds settled at the final price of 24.5, according to the International Swaps and Derivatives Association.

As announced Nov. 22, Venezuela had defaulted on $2,495,963,700 of 7¾% notes due 2019 and $2,495,963,000 of 8¼% notes due 2024. Interest payments were originally due on Oct. 13.

There are also Petroleos de Venezuela SA CDS contracts that will go to auction.

Otherwise, emerging market credit was fairly quiet with focus on three important monetary policy meetings slated this week and as many trading and syndicate desks begin to close out their books for the year ahead of the holiday season.

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