New Kazakhstan tranches edge up; Mogo to tap 9½% notes; Suzano prices $500 million tap

By Rebecca Melvin

New York, Nov. 6 – Kazakhstan’s two newly priced tranches of notes were trading well on Tuesday after the sovereign priced €1.05 billion of the five-year and 10-year notes well tight of initial price thoughts.

The new €525 million of Kazakhstan 1.55% notes due 2023 were quoted at 100.85 bid, 101 offered after the notes priced at par.

The new €525 million of Kazakhstan 2 3/8% notes due 2028 were seen at 100.75 bid, 100.95 offered after also pricing at par.

The five-year notes were initially talked at a 1 7/8% to 2% yield, and the new 10-year notes were initially talked at 2 5/8% to 2¾%.

The order books at the time guidance was released were for €4 billion of notes with a slight skew to the five-year notes. That order book size had portended positive trading, a market source said.

The sovereign initially talked the deal at a single tranche of 10-year notes.

Elsewhere, Latvia-based Mogo Finance SA has opened books for a proposed add-on to its 9½% notes due 2022, and Brazil’s Suzano Papel e Celulose SA priced a $500 million tap of its 7% senior notes due 2047 (rating: //BBB-).

Mogo has an existing €50 million issue of the 9½% notes. Proceeds of the bond issue will be used to refinance existing loans from peer to peer marketplace, so-called Mintos debt.

KNG Securities LLP, ABG Sundal Collier AB, Bankhaus Scheich Wertpapierspezialist AG, BlueOrange Bank AS, Gottex Brokers SA and STX Fixed Income BV have been mandated for the Regulation S transaction and arranged roadshow meetings, with settlement expected in mid-November.

The Riga, Latvia-based company is a provider of used-car finance.

Suzano priced a $500 million tap of its 7% senior notes due 2047 (rating: //BBB-) at 101.842 to yield 6.85%, according to a syndicate source.

The new notes, issued by Suzano Austria GmbH, but guaranteed by Suzano Papel e Celulose, will form one series with Suzano’s existing $500 million of 7% notes due 2047.

Suzano plans to use the proceeds for general corporate purposes.

Bank of America, BNP Paribas, JPMorgan, Mizuho and Rabobank were joint bookrunners of the Rule 144A and Regulation S deal.

Other deals for Latin America have fallen off the calendar in recent weeks amid tough market conditions. One such deal was a green bond for Guatemala’s Corporacion Multi Inversiones. That deal for a CMI subsidiary has been postponed, according to market sources. The company had met with fixed-income investors regarding a potential $800 million of notes that were talked to yield 7 5/8% in October.

A syndicate source declined to comment on the CMI deal, but sources away from the deal say it is difficult to bring deals from smaller or unknown issuers at this point the year, which has been loss-making year for emerging markets debt.

CMI is a multinational agro-industrial corporation.

Last week, Investimentos e Participacoes em Infraestrutura SA (Invepar), a Rio de Janeiro-based transport infrastructure concessions company, postponed a planned U.S. dollar-denominated benchmark of intermediate notes.

In secondary market action, Mexico’s Petroleos Mexicanos’ bonds traded flat to higher on Tuesday. The Pemex 6½% bonds due 2027 stood at 97.80 last on Tuesday, from 97.60 late Monday. The Pemex 6¾% notes due 2047 were last 87¾, which was little changed on the day.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.