Banco Nacional de Costa Rica, Topaz, RCS & RDS, First Gen sell notes; corporates tighten

By Christine Van Dusen

Atlanta, Oct. 25 - Banco Nacional de Costa Rica, Dubai's Topaz Energy and Marine Ltd., Romania's RCS & RDS SA, Philippines-based First Gen Corp. priced notes on Friday, a slightly less active session for emerging markets assets.

But corporate bonds managed to see some tightening, a London-based trader said.

"The biggest move was seen in Turkish banks, which were 19 basis points tighter on the week," she said.

Emerging markets investors also focused some of their attention on the new notes from Turkey's Turkiye Vakiflar Bankasi TAO (Vakifbank).

The issuer priced $500 million issue 5.149% notes due 2018 at 99.35 to yield mid-swaps plus 370 bps following talk in the 387.5 bps area.

"It traded up a half-point from reoffer this morning," a trader said on Friday. "The books were 13-times oversubscribed."

Barclays, Goldman Sachs, HSBC, ING, National Bank of Abu Dhabi and Scotiabank were the bookrunners for the Rule 144A and Regulation S deal.

The new €1 billion issue of 3.984% notes due 2018 that Russia's Gazprombank OJSC priced at par to yield 3.984%, or mid-swaps plus 280 bps, moved to mid-swaps plus 268 bps on Friday.

"It has performed well," the trader said.

Citigroup, Credit Agricole, Deutsche Bank and GPB Financial Services were the bookrunners for the Regulation S marketing trip.

Meanwhile, several issuers planned roadshows, including Guatemala's Banco de los Trabajadores (Bantrab), Mexico's Cobre Del Mayo SA de CV and China Citic Bank International Ltd.

QNB moves below reoffer

In trading on Friday, Qatar National Bank SAQ's new floating-rate notes due 2016 that priced at par to yield Libor plus 125 bps performed well, while the company's 2¾% fixed-rate notes due in 2018 suffered, a trader said.

Those notes priced at 99.459 to yield mid-swaps plus 145 bps.

"Now trading below reoffer," the trader said.

And sovereign bonds from Ukraine moved lower at the end of the week on some profit-taking, said Svitlana Rusakova of Dragon Capital.

On the corporate side, shorter-duration bonds got the most attention, she said.

OGX in single digits

Amid increasing chatter of a bankruptcy filing by OGX Petroleo e Gas Participacoes SA, the company's 8½% notes due 2018 and 8 3/8% notes due 2022 fell back into the single digits on Friday, a trader said.

Brazilian publication Valor Economico reported that talks with creditors - spurred by a missed coupon on the 2022 paper earlier this month - ended earlier in the week with no restructuring agreement reached.

Costa Rica bank prices

Banco Nacional de Costa Rica priced a two-tranche, $1 billion issue of notes due 2018 and 2023, a syndicate source said.

The $500 million 4 7/8% five-year notes priced at 99.331 to yield Treasuries plus 375 bps, following talk of a spread in the Treasuries plus low-400 bps area.

The $500 million 10-year notes - also talked at a spread in the low-400 bps area - priced at 99.072 to yield Treasuries plus 387.5 bps.

BofA Merrill Lynch and JPMorgan were the bookrunners for the Rule 144A and Regulation S deal.

The proceeds will be used for debt refinancing, increasing the company's liquidity profile and for general corporate purposes.

Topaz does deal

Dubai-based oilfield services company Topaz Marine priced $350 million 8 5/8% notes due 2018 at par to yield 8 5/8%, a market source said.

The notes were talked at 8 5/8%.

Goldman Sachs, HSBC and Standard Chartered Bank were the bookrunners for the Rule 144A and Regulation S deal. Clarkson Capital Markets, DVB Capital Markets, Pareto Securities and RBC Capital Markets are the co-managers.

The proceeds will be used to repay existing indebtedness, fund capital expenditures and to increase cash on the balance sheet.

RCS & RDS sells notes

Romania-based telecom RCS & RDS priced a €450 million issue of 7½% notes due 2020 at par to yield 7½%, a syndicate source said.

The notes priced at the tight end of talk, set at 7½% to 7¾% for the upsized deal.

Erste Group, JPMorgan, Societe Generale and Unicredit Bank were the joint bookrunners for the Rule 144A and Regulation S deal.

Proceeds, along with proceeds from a new term loan and liquidity facility, will be used to refinance debt.

The issuing entity is Cable Communications Systems NV, the controlling shareholder of RCS & RDS.

The Bucharest-based company provides telecommunications services in Romania and Hungary.

First Gen prices tap

Philippines-based power generation company First Gen priced a $50 million add-on to its existing 6½% notes due 2023 at 100.125, a market source said.

Deutsche Bank, HSBC and JPMorgan were the bookrunners for the Regulation S deal.

The original $250 million issue priced at par to yield 6½%, or Treasuries plus 389.5 bps.

Kaspi prints bonds

Friday's deals followed the Thursday pricing of Kazakhstan-based JSC Kaspi Bank's $200 million 9 7/8% notes due 2018 at 99.684 to yield 10%, a market source said.

The notes were talked at a yield of 9¾% to 10%.

JPMorgan and VTB Capital were the joint bookrunners for the Rule 144A and Regulation S transaction. Resmi FIH JSC was the local arranger.

Issue from Mexican corporate

Kansas City Southern de Mexico sold $250 million floating-rate notes due 2015 at par to yield Libor plus 70 bps, a market source said.

The notes were talked at a spread in the 75 bps area.

BofA Merrill Lynch, JPMorgan and Morgan Stanley were the bookrunners for the Rule 144A and Regulation S deal.

The issuer is a Mexico City-based freight transportation company.

Bantrab sets marketing trip

Guatemala's Bantrab will set out on a roadshow starting Oct. 28 for a possible issue of dollar-denominated notes, a market source said.

Deutsche Bank and BCP Securities are the bookrunners for the Rule 144A and Regulation S deal.

The lender's roadshow will conclude on Nov. 4.

Roadshow for mining company

Mexico-based mining company Cobre Del Mayo is planning a roadshow beginning Oct. 29 for a dollar-denominated issue of notes with Jefferies, BCP Securities and Nomura Securities in a Regulation S deal.

China Citic Bank has mandated BBVA, HSBC, RBS and Goldman Sachs to arrange a roadshow starting Monday, a market source said.

A dollar-denominated issue of Regulation S notes is expected to follow.

Stephanie N. Rotondo contributed to this article

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