Morning Commentary: Emerging market debt weakens; EM-focused Millicom set to price

By Rebecca Melvin

New York, Oct. 11 – Emerging markets debt was weaker early Thursday as a rout in U.S. equities on Wednesday spread to global equity markets on Thursday, according to market sources.

“Everything is struggling. Spreads are wider today,” a London-based trader focused on the Middle East and Africa region credits said.

Luxembourg-based Millicom International Cellular SA, which had been on the calendar for a $500 million offering of eight-year senior notes (Ba2//BB+), was aiming to price on Thursday with the latest update on pricing at 6 5/8% to 6¾% on Thursday.

Final talk came tight to earlier price talk in the 6 7/8% area and at the wide end of initial guidance in the mid 6% area.

Millicom, which operates in Latin America and Africa, plans to use the proceeds to help fund its acquisition of an 80% stake in Panama-based company Cable Onda.

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