Agrokor pulls dollar notes; Raspadskaya sets talk; Arcos Dorados, China Tianrui eye deals

By Aleesia Forni and Paul A. Harris

Columbus, Ohio, April 19 - The emerging markets space saw Croatia's Agrokor dd withdraw a planned dollar-denominated tranche and cut short its roadshow, electing to attempt to place its benchmark offering of seven-year notes (B2/B) in euros only, market sources said on Thursday.

The deal is talked with a yield in the 10% area.

Terms were expected as early as Thursday's close in Europe. However, late in the session no terms were available, according to a London sellside source, who added that the deal will likely be priced on Friday.

A roadshow for the withdrawn dollar tranche was scheduled to get underway in the United States on Friday and to run through April 24.

BNP Paribas, UniCredit SpA and J.P. Morgan Securities LLC are the joint bookrunners.

Erste Group, Banka Intesa, Raiffeisen Bank International and SG CIB are the co-managers.

The Rule 144A and Regulation S notes come with three years of call protection.

The Zagreb, Croatia-based consumer food products company plans to use the proceeds to refinance debt.

The primary market also saw Russia's OAO Raspadskaya set price talk and Argentina's Arcos Dorados Holdings Inc. announce its plan to price an add-on, while China Tianrui Group Cement Co. Ltd. began meetings with institutional investors.

Russian deals

Russia continues to be the "star of the show" in the emerging markets space, according to a London-based source.

After falling roughly ¼ point on Thursday, Moscow-based Promsvyazbank may have gone for too large of a deal, according to one trader, after pricing $100 million over initial talk.

The bank sold $400 million 8½% five-year notes at par on Wednesday.

Also in that region, Raspadskaya has set initial price talk of 7% for its offering of five-year notes, which seems "way too aggressive" to one market source.

The Kemerovo, Russia-based coal-mining company mandated Goldman Sachs, Morgan Stanley and VTB Capital to arrange the deal.

Arcos Dorados add-on

Arcos Dorados plans to sell an add-on to its Brazilian real-denominated 10¼% senior unsecured notes due 2016, according to a company news release.

Based in Buenos Aires, Arcos Dorados is the largest operator of McDonald's restaurants in Latin America.

China Tianrui roadshow

China Tianrui was scheduled to begin a roadshow on April 19 with institutional investors in Asia, Europe and the United States ahead of a proposed offering of senior notes, according to a company news release.

The issuance is subject to market conditions.

The company plans to use proceeds for acquisitions, refinancing existing debt and general corporate purposes.

Deutsche Bank is the lead manager and bookrunner.

China Tianrui is a Ruzhou City, China-based clinker and cement producer.

Shanshui deal

Also in the Asian market, China's Shanshui Cement's proposed dollar-denominated offering of five-year senior notes is being held up by a document issue, according to a market source. The deal had previously been expected to price as early as Tuesday.

On Wednesday, the company tightened price talk on the proposed issue to the 10½% area from previous talk of 10½% to 10¾%.

Although the company has not yet come out with a deal size, it is believed to be looking at a $400 million maximum amount.

Credit Suisse, Deutsche Bank, HSBC and JPMorgan are the joint bookrunners.

The Rule 144A and Regulation S notes come with three years of call protection.

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