By Rebecca Melvin
New York, June 29 – Mexico’s Banco Mercantil del Norte SA (Banorte) priced an upsized $900 million of perpetual callable tier 1 capital notes (Expected: Ba2/BB) in two tranches on Thursday, a market source said.
The deal size was initially talked at $500 million.
The $350 million of notes callable after five years priced at par to yield 6 7/8%, and the $550 million of non-call 10 notes priced at par to yield 7 5/8%.
Pricing came tighter than talk, which was in the mid 7% area for the shorter-dated notes and at 8¼% for the longer notes.
UBS and Morgan Stanley were joint bookrunners for the deal. MUFG and Wells Fargo acted as co-managers.
Banorte is a lender based in Monterrey, Mexico.
| Issuer: | Banco Mercantil del Norte SA (Banorte)
|
| Amount: | $900 million, upsized from $500 million
|
| Description: | Perpetual callable Tier 1 capital notes
|
| Bookrunners: | UBS and Morgan Stanley
|
| Co-managers: | MUFG and Wells Fargo
|
| Trade date: | June 29
|
| Settlement: | July 6
|
| Expected ratings: Moody's: | Ba2
|
| S&P: BB
|
|
|
| Non-call five notes
|
| Amount: | $350 million
|
| Maturity: | Perpetual
|
| Coupon: | 6 7/8%
|
| Price: | Par
|
| Yield: | 6 7/8%
|
| Price talk: | Mid 7% area
|
|
|
| Non-call 10 notes
|
| Amount: | $550 million
|
| Maturity: | Perpetual
|
| Coupon: | 7 5/8%
|
| Price: | Par
|
| Yield: | 7 5/8%
|
| Price talk: | 8¼%
|
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