Morning Commentary: EM investors eye new supply; Metinvest on deck; secondary softens

By Rebecca Melvin

New York, April 4 – New deal announcements were seen in emerging markets early Wednesday in continuation of Tuesday’s action. But secondary market dealings have softened as market players have returned from the Easter holiday, a market source said.

Ukraine’s Metinvest BV was talking its planned notes for pricing later in the day. Guidance on the dollar-denominated five-year tranche was tightened to yield of 7 7/8% to 8% from initial talk in the 8% area; and, guidance on the eight-year notes was tightened to 8 5/8% to 8¾% from initial talk in the mid- to high-8% range.

Deutsche Bank AG, ING Bank NV, Natixis and UniCredit are bookrunners of the Rule 144A and Regulation S notes, which were pricing concurrently with a tender on the company’s 2021 notes.

But a rally in existing paper that marked month-end and quarter-end has not spilled into the new week, a market source said. Spreads are generally mixed, with Turkey being among the underperformers. And investors are content to sit back and wait for new supply.

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