Gabon, Premier Oil, China State Shipbuilding sell notes; investors 'fidgety'; Ooredoo down

By Christine Van Dusen

Atlanta, Dec. 5 - Gabon, London's Premier Oil plc, China's Baosteel Group Corp. and China State Shipbuilding Corp. sold notes on a Thursday that saw wider spreads for emerging markets assets.

"Asian markets opened up weaker this morning, with investors fidgety," a London-based analyst said. "The recent action in markets follows a heightened risk of tapering to begin soon, with headline numbers supportive of such a view."

The Markit iTraxx SovX CEEME ex-EU index spread on Thursday opened at 326 basis points over Treasuries, 2 bps wider than Wednesday.

Against this backdrop, Chile's Masisa SA and Dubai's Baghlan Group FZCO set up roadshows for possible issues of notes.

In trading on Thursday, Abu Dhabi-based Aldar Properties PJSC's new $750 million 4.348% notes due Dec. 3, 2018 that priced at par suffered, a London-based trader said.

"The party feels over for Aldar," he said. "The few accounts who squeezed the market up to 101.45 are now out. And throw in the rates move, she is off ¾ of a point from the high," he said.

On Wednesday the notes were seen at 100.93 bid, 101.18 offered.

The notes came to the market at a yield of 4.348%, or mid-swaps plus 290 bps.

Standard Chartered Bank, Dubai Islamic Bank, First Gulf Bank, Goldman Sachs and National Bank of Abu Dhabi were the bookrunners for the Regulation S deal.

Qatar's Ooredoo QSC saw its new issue of 3.039% notes due Dec. 3, 2018 that priced at par trade Thursday at 99.87 bid, 99.97 offered, a trader said.

The notes traded Wednesday at 99.97 bid, 100.07 offered.

The notes priced at a spread of mid-swaps plus 160 bps with DBS Bank, Deutsche Bank, HSBC, QInvest and QNB Capital in a Regulation S deal.

Lat-Am rallies

Looking to Latin America, debt rallied in trading on Thursday, a New York-based trader said.

Most prices for higher-rated names were unchanged or slightly higher. Venezuela was a particular standout, climbing as much as 1¼ points, he said.

Bonds from Argentina were mostly unchanged amid better selling throughout the region, he said.

Gabon sells notes

In its new deal, Gabon priced $890 million 6 3/8% notes due Dec. 12, 2024 (/BB-/BB-) at par to yield 6 3/8%, according to a filing from the sovereign.

The notes priced tighter than talk, set in the 6½% area.

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

The new deal was part of an exchange and tender offer of Gabon's $1 billion 8.2% notes due in 2017. The sovereign took in about $610 million from the exchange process, according to the filing.

Premier Oil does deal

London-based and emerging markets-focused Premier Oil priced £150 million 5% notes due Dec. 11, 2020 at par to yield 5%, a market source said.

Barclays, Canaccord Genuity and Lloyds Bank were the bookrunners for the Regulation S deal.

Premier is an independent exploration and production company with oil and gas interests in the North Sea, South East Asia and in the Middle East, Africa and Pakistan region.

New issue from Baosteel

China-based iron and steel company Baosteel sold $500 million 3¾% notes due Dec. 12, 2018 at 99.199 to yield 3.928%, or Treasuries plus 245 bps, a market source said.

Bank of China, Deutsche Bank, HSBC and ICBC International were the bookrunners for the Regulation S deal.

The proceeds will be used to repay debt, finance capital expenditures and for working capital and other general corporate purposes.

The issuer is a Shanghai-based and state-owned iron and steel company.

Chinese shipbuilder prices

China State Shipbuilding, through wholly owned subsidiary CSSC Capital 2013 Ltd., priced $800 million 2¾% notes due Dec. 12, 2016 at 99.774 to yield Treasuries plus 225 bps, a market source said.

CCB International, Bank of China, Barclays, Citic Securities International and Mitsubishi UJ Securities were the bookrunners for the Regulation S deal.

The proceeds will be used to finance investment opportunities and for general corporate purposes.

The issuer is a Shanghai-based shipbuilding conglomerate.

Uranium One gives guidance

Canada-based and emerging markets-focused Uranium One set talk at 6¼% to 6 3/8% for its upcoming issue of $350 million non-convertible senior notes due in 2018, a market source said.

Deutsche Bank, Sberbank and Societe Generale are the bookrunners for the Rule 144A and Regulation S deal.

The proceeds will be used to repurchase existing convertible debentures and for general corporate purposes.

The issuer is a uranium mining company with operations in Kazakhstan and South Africa.

Masisa, Baghlan set roadshows

Chile-based wood products producer Masisa will set out on Dec. 10 for a roadshow to market a possible issue of notes with Deutsche Bank, Itau BBA, JPMorgan and Scotiabank, a market source said.

The roadshow begins on Dec. 10 in Lima and New York and will travel to Los Angeles and Boston before concluding on Dec. 13 in New York and London.

And Dubai-based oil transportation company Baghlan Group has mandated BNP Paribas to arrange a roadshow for a dollar-denominated issue of Regulation S notes starting Friday.

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