Emerging markets weaker; new deals keep coming; Cemex adds on $500 million; URBI beats talk

By Cristal Cody and Paul A. Harris

St. Louis, Jan. 13 - Emerging markets softened during the trading sessions in Europe and the United States Wednesday, market sources said.

"It's all widening today," commented a London-based trader, speaking at the close of the European session.

A syndicate banker in New York had much the same color, noting that emerging markets were slightly weaker, at the close of the U.S. session.

Meanwhile the primary market remained active.

Cemex re-opens 9½% notes

Mexico's Cemex Finance LLC priced a $500 million add-on to its 9½% senior secured notes due Dec. 14, 2016 (/B/B+) at 105.25 to yield 8.477% on Wednesday.

The reoffer price came rich to the 105 price talk.

Bank of America Merrill Lynch was the global coordinator. Bank of America Merrill Lynch, Barclays Capital, Citigroup and JP Morgan were bookrunners.

Proceeds will be used to refinance debt and for general corporate purposes.

URBI prices better than talk

Also from Mexico, URBI, Desarrollos Urbanos, SAB de CV priced an upsized $300 million issue of 9½% 10-year senior guaranteed notes (Ba3//BB) at 98.424 to yield 9¾%.

The deal priced tighter than the 10% area price talk.

Deutsche Bank Securities and Santander were joint bookrunners for the debt refinancing.

When free to trade, the new URBI 9½% notes due 2020 were quoted at par 7/8 bid, 101 1/8 offered in the secondary market, according to a buy-side source.

URBI's existing 8½% notes due 2016 also improved Wednesday, according to the source, who spotted them at 99½ bid, par½ offered.

Indian Oil talks five-year deal

Indian Oil Corp. Ltd. set price talk for its expected $500 million maximum offering of five-year notes at mid-swaps plus 220 bps to 240 bps, on Wednesday.

The roadshow for the Regulation S deal was scheduled to conclude Wednesday in London.

Deutsche Bank, HSBC and Standard Chartered Bank are leading the offer.

Proceeds will be used to help fund capital expenditures.

Moody's Investors Service assigns a Baa3 corporate credit rating to the New Delhi-based diversified energy company while Fitch assigns a BBB- corporate credit rating.

The deal is three times oversubscribed, according to a buy-side source.

Listrindo to sell $300 million

Meanwhile from Asia, Listrindo Capital BV, a financing arm of Indonesia independent power producer PT Cikarang Listrindo, plans to sell $300 million of senior secured notes (Ba2).

A roadshow got underway this week, and includes stops in Hong Kong, Singapore, London and New York.

Credit Suisse and Barclays Capital are joint bookrunners.

The Jakarta-based electricity supplier plans to use the proceeds to repay bank debt, as well as to fund its capacity expansion program, and for general corporate purposes.

'Amazing' flood of deals

"The flood of new issues is amazing," said a Switzerland-based trader, at the close of the European session.

"We hardly find time to analyze the credits we show to our clients.

"Sometimes this weighs on existing bonds as the new ones come much cheaper," the source added, but noted that not every new issue performs well.

"People are afraid to miss the party, so they buy whatever they see, forgetting that other issues will follow, at even cheaper terms."

Despite the widening seen in European trading Wednesday, overall emerging markets are "still rock solid," the trader said.

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