Morning Commentary: Planned Frontera Energy note offering quiet as market conditions eyed

By Rebecca Melvin

New York, June 15 – No deal talk on Frontera Energy Corp.’s planned $500 million offering of five-year senior notes emerged on Friday, and the deal was not expected to price on Friday, according to a syndicate source.

The Colombia-focused energy company, like other issuers, needs to feel comfortable with the levels they will be able to achieve on yield, the source said, adding that it wasn’t possible to speculate on when pricings will occur, only that markets need to be calmer for new issues to proceed.

Round two of Colombia’s presidential election is set to take place on Sunday, which could contribute to some uncertainty regarding pricing for this deal this week.

Meanwhile rocky markets continue in EM in general.

On Friday the Mexican peso stood at 20.68 per U.S. dollar after sliding to a 16-month low of 20.82 on Wednesday. The move was the latest of a string of EM currency travails that have contributed to a recent trend of sell-offs in EM bonds alternating with overall softness.

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