Primary sees new deals from Woori Bank, Gazprom, Bangkok Bank; recent Caltex deal firms

By Aleesia Forni

Virginia Beach, Sept. 24 - Although spreads were generally wider in the emerging markets space on Tuesday, that did little to slow the flow of new issuance during the session.

Tuesday saw Woori Bank, Gazprombank OJSC, Bangkok Bank plc and Coca-Cola Icecek SA sell deals.

Details also emerged on recent sales from GS Caltex Corp. and United Mexican States during the session.

During the session, Bangkok Bank priced $1 billion of notes in two parts due 2018 and 2023.

There was $500 million of 3.3% five-year notes at Treasuries plus 190 basis points and a $500 million tranche of 5% 10-year notes sold at Treasuries plus 235 bps.

In other primary action, Turkey's Coca-Cola Icecek sold $500 million of 4¾% notes due 2018 at Treasuries plus 350 bps.

A new deal also emerged from Korea's Woori Bank, which sold $500 million of 2 7/8% notes due 2018 at Treasuries plus 160 basis points.

Meanwhile, Russia's Gazprombank sold $750 million of 7.496% notes due 2023 at par.

In forward calendar news, Mexico's Oceanografia SA de CV announced plans on Tuesday to sell $280 million of five-year notes.

Also in the pipeline, The Government of Barbados has mandated bookrunners to host a roadshow ahead of a planned private placement of notes due 2025.

Tuesday's session also saw Mexico detail its recent $3.9 billion sale of senior global notes on Tuesday.

The 10-year offering priced with a spread of Treasuries plus 135 bps.

GS Caltex also gave terms on its $400 million offering of five-year notes, which sold with a spread of Treasuries plus 190 bps.

A trader noted that the recent issue was trading better on Tuesday, quoting the notes 3 bps tighter compared to its new issue spread.

In other secondary action, OGX Petroleo e Gas SA continued to be topical during the session. The bonds were weaker following news the company was restarting efforts to sell assets to raise cash.

Bangkok Bank two-parter

The largest deal in emerging markets on Tuesday came from Bangkok Bank, which priced a $1 billion two-part offering of notes (A3/BBB+/BBB+) due 2018 and 2023, according to an informed source.

The company sold $500 million of 3.3% five-year notes at Treasuries plus 190 bps.

Pricing was at 99.985 to yield 3.323%.

A $500 million tranche of 5% 10-year notes sold at Treasuries plus 235 bps, or 99.961 to yield 5.005%.

Morgan Stanley was the bookrunner for the Rule 144A and Regulation S deal.

The company previously held a roadshow during the Sept. 16 week.

Gazprombank prices

Also on Tuesday, Russia's Gazprombank priced on Tuesday $750 million of 7.496% notes due 2023 at par, according to a syndicate source.

Barclays, BNP Paribas, BOC International, Goldman Sachs, GPB Financial Services and Societe Generale were the joint bookrunners.

The company previously held a roadshow during the Sept. 16 week.

The issuer is a Moscow-based lender.

Icecek sells $500 million

Turkey's Coca-Cola Icecek priced $500 million 4¾% five-year notes due 2018 with a spread of Treasuries plus 350 basis points, according to an informed source.

Barclays, Citigroup, HSBC and JPMorgan were managing the sale.

The company previously held a roadshow during the Sept. 16 week.

Coca-Cola Icecek is a bottler based in Istanbul.

Woori new issue

Meanwhile, Woori Bank sold on Tuesday $500 million 2 7/8% notes due 2018 with a spread of Treasuries plus 160 basis points, according to a market source.

The notes sold at the tight end of talk.

Pricing was at 99.341 to yield 3.018%.

Woori, Barclays, Citigroup, Deutsche Bank, Standard Chartered Bank and HSBC were the joint bookrunners for the Rule 144A and Regulation S deal.

As previously announced, the company began a series of investor meetings on Sept. 9 ahead of the bond offering.

Woori is a Seoul-based lender.

Oceanografia sets size

A new deal announcement came from Mexico's Oceanografia on Tuesday.

The company is planning to price $280 million of five-year notes, according to an informed source.

The notes would be issued by wholly owned subsidiaries OSA Goliath Pte. Ltd. and Caballo Marango Pte. Ltd.

The proceeds would be used to partially finance the purchase of two sub-sea vessels.

Pareto is the bookrunner.

Oceanografia is an offshore oil engineering services company.

Barbados roadshow

The Government of Barbados is also expected to hit the primary bond market, and has mandated Deutsche Bank Securities Inc. and CIBC to host a roadshow ahead of a planned offering of amortizing notes due 2025 in a private placement, according to an informed source.

Proceeds will be used to finance a tender offer, to provide budgetary support to finance fiscal operations, to build foreign exchange reserves and to improve the government's external debt maturity.

Mexico sells $3.9 billion

Mexico sold $3.9 billion senior global notes (Baa1/BBB/BBB+) due 2023 with a spread of Treasuries plus 135 bps, according to a FWP filed with the Securities and Exchange Commission.

BofA Merrill Lynch, Goldman Sachs & Co. and Morgan Stanley & Co. LLC were the joint bookrunners.

Mexico plans to use proceeds from the sale for liability management transactions, which may include payment of the purchase price for outstanding notes, and for general purposes, including the refinancing, repurchase or retirement of debt.

Caltex prices tight

In another recent deal, GS Caltex priced $400 million of 3¼% five-year notes (Baa2/BBB/) with a spread of Treasuries plus 190 bps in a Rule 144A and Regulation S deal, according to an informed source.

The deal priced at the tight end of talk.

Pricing was at 99.548 to yield 3.349%.

The notes were quoted at 187 bps bid, 185 bps offered on Tuesday.

Bookrunners were BofA Merrill Lynch, Citigroup and Goldman Sachs.

GS Caltex is an oil refiner based in Seoul, South Korea.

OGX bonds giving back

OGX's 8½% notes due 2018 slipped slightly in Tuesday trading, a trader reported.

He saw the bonds falling ¼ point to 18 5/8.

Another trader said the bonds were "a touch lower" at 181/2.

On Tuesday, The Wall Street Journal reported that majority owner Eike Batista was looking to restart talks with Malaysian oil company Petroliam Nasional, which had previously shown interest in purchasing a stake in the Tubarao Martelo field in Brazil. Petronas, as it is commonly referred to, had agreed in May to pay $850 million to OGX for a 40% stake in the oil field. However, in August, Petronas backed away from the discussion, stating that OGX needed to deal with its restructuring first.

It was also reported Tuesday that OGX had hired Lazard as a financial advisor as it looks to restructure its debt. The company had previously engaged Blackstone Group LP as a financial advisor.

Stephanie N. Rotondo contributed to this review

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