Invitel rolls out €340 million; Cemex adds euro tranche to benchmark deal; EM trades flat

By Paul A. Harris and Christine Vandusen

St. Louis, Dec. 7 - Emerging markets sovereign debt was flat in Monday's emerging markets session in the United States, while corporates were flat to slightly heavy, a banker in New York said.

Hungary's Invitel (Magyar Telecom BV) set price talk for its €340 million offering of seven-year senior secured notes at 9¾% to 10%, with 1 to 2 points of original issue discount.

The deal is expected to price on Tuesday.

Credit Suisse is the bookrunner for the Rule 144A/Regulation S offering. Calyon Securities and BNP Paribas are joint bookrunners.

Proceeds will be used to repay bank debt and the company's 10¾% senior notes.

Nomos talks $200 million

Meanwhile, Russia's Nomos Capital plc, a finance unit of Nomos Bank, talked a $200 million offering of three-year loan participation notes (//B+) at the 9¼% area.

Deutsche Bank and JP Morgan are leading the deal, which is expected to price by the end of the week.

Cemex adds euro tranche

Mexico's Cemex Finance added a tranche of euro-denominated eight-year tranche to its benchmark-sized offering of senior secured notes (B/B+).

The notes will come with four years of call protection.

The deal began as a single tranche of dollar-denominated seven-year senior secured notes, also featuring four years of call protection.

Bank of America Merrill Lynch, Citibank and JPMorgan are joint bookrunners.

Pricing is expected later this week.

Sigma Alimentos talks $250 million

Mexico's Sigma Alimentos SA de CV set price talk on its $250 million of 10-year senior notes (/BBB-/BBB-) at Treasuries plus 350 bps.

Deutsche Bank and Santander are the leads.

Proceeds will be used to refinance debt.

A roadshow concluded Monday.

Posadas plans non-deal roadshow

Mexico's Grupo Posadas, SAB (B2/B+/B+) mandated JP Morgan to lead a non-deal roadshow which will involve a series of meetings with fixed income investors.

Stops include Los Angeles on Tuesday, the New York area on Wednesday and Thursday, Boston on Friday, and London on Monday.

Grupo Posadas is an Acapulco-based hotel chain owner.

First Ship scuttle notes offer

Singapore's First Ship Lease Trust pulled its $200 million offering of senior notes due 2016 as a result of market disruption caused by Dubai's plan to freeze $26 billion of its debt, according to a statement from the company.

"The start of the investor roadshow coincided with the outbreak of the Dubai World credit crisis. This impacted fixed-income investor sentiment, particularly in Asia and Europe," said Philip Clausius, First Ship Lease Trust's chief executive officer, in a news release.

"Since we have no external pressure, including that from our bank lenders, to conclude this offering, we have decided to suspend it for now. We will revisit it when market circumstances change."

The Rule 144A for life and Regulation S deal via JP Morgan and Jefferies & Co. was to be non-callable for four years. Proceeds were to be used to repay bank debt and fund vessel acquisitions.

First Ship Lease Trust provides alternative capital financing to the maritime industry.

Nakheel lower again

A trader said that Dubai development company Nakheel's bonds "were down a little from where they were on Friday," seeing its 3.172% notes slated to come due on Dec. 14 - a week from Monday - at 51-52 and its 2¾% notes due 2011 also a few points lower at 41-43.

Dubai officials were reported to have had their first face-to-face meeting with international and regional bankers since their Nov. 25 declaration that Nakeheel parent Dubai World would ask for a six-month delay in paying its debt obligations, including the 3.172% bonds. The Financial Times reported that the meeting would likely be the "kick-off" for what is expected to be a long series of such meetings, as the banks and Dubai World try to thrash out a solution. It said that key creditors are expected to form a steering committee that would speak for all of them.

The paper further reported that there was "a range of views" among the lenders as to whether the Dec. 14 bonds should be included in any standstill that the banks might agree to - or whether, as some lenders contend - the big issue "has to be repaid at all costs."

On Friday, the 2011 bonds had been quoted at 43-45, "about where they had been," a trader said, while the Dec. 14 bonds had fallen to 55-57, down from prior levels around 58-60, as the creditors held a conference call with their lawyers to discuss their response to government effort to restructure its debt.

The Dec. 14 bonds had been trading as high as 110 bid before the Nov. 25 debt warning announcement from Nakheel, while the 2011 bonds had hovered in the 80s before that news hit the markets.

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