Equate Petrochemical, Alfa Bank price deals; MMI on roadshow for $300 million offering

By Paul A. Harris

Portland, Ore., Oct. 27 – In Thursday’s emerging markets debt activity Kuwait’s Equate Petrochemical Co. KSCC priced $2.25 billion senior notes.

And Russia’s JSC Alfa-Bank priced a $400 million issue of 8% tier 1 perpetual notes (Ba2/BB/BB+) at par.

Meanwhile an international roadshow is underway for Singapore-based MMI International Ltd.’s $300 million offering of five-year senior secured notes.

Equate Petrochemical

Kuwait’s Equate Petrochemical priced $2.25 billion senior notes (Baa2/BBB+) in two tranches on Thursday, according to a market source.

A $1 billion amount of 3% notes due March 3, 2022 priced at a 195 basis points spread to mid-swaps, on top of final talk.

A $1.25 billion tranche of 4¼% notes due Nov. 3, 2026 priced at mid-swaps plus 270 bps, also atop final talk.

The deal played to $5.5 billion of demand, the source said.

The launch spreads come inside of revised spread talk.

As reported, the long five-year notes, due in March 2022, were talked in the mid-swaps plus 212.5 bps area after initial talk in the low-200 bps area.

The 10-year notes were talked in the mid-swaps plus 287.5 bps area, following initial talk of a spread in the high-200 bps to 300 bps.

Citigroup, HSBC, JPMorgan and NBK Capital were the global coordinators and joint bookrunners. Banca IMI, Mizuho Securities, MUFG and SMBC Nikko were also joint bookrunners.

Equate is 85% owned by Petrochemical Industries Co. and Dow Chemical and produces essential chemical compounds as the largest petrochemical complex in Kuwait.

Alfa Bank perpetual

Russia’s Alfa-Bank priced a $400 million issue of 8% tier 1 perpetual notes (Ba2/BB/BB+) at par on Thursday, according to a market source.

Alfa Bank and UBS were the bookrunners.

MMI International roadshow

An international roadshow is underway for Singapore-based MMI International’s $300 million offering of five-year senior secured notes (expected ratings B2/B+), according to a syndicate source.

The roadshow for the Rule 144A and Regulation S deal was scheduled to be in Hong Kong on Thursday, London on Friday, New York on Monday and Boston on Tuesday, and the deal is set to price after that.

Goldman Sachs & Co. is the left bookrunner. ANZ, KKR and Standard Chartered are the joint bookrunners.

The hard disk drive supplier plans to use the proceeds to pay down its term loan A.

Guangxi Communications notes

Guangxi Communications Investment Group Corp. Ltd. is selling dollar-denominated fixed-rate notes (Baa3//BBB), according to a stabilization notice which appeared on Thursday.

The stabilization period begins today.

Societe Generale SA is the stabilization manager.

The issuer is the toll road authority in the southern Chinese province of Guangxi.

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