Korea's National Agricultural sells $500 million; Eurasian Development deal trades up 2½ points

By Paul A. Harris

St. Louis, Sept. 23 - Emerging markets rallied during the U.S. session, according to a syndicate banker in New York.

The primary market remained active.

Korea's National Agricultural Cooperative Federation priced a $500 million issue of 5% five-year senior fixed-rate notes (A2/A/A+) at a 230 basis points spread to mid-swaps on Wednesday, according to a market source.

The deal priced tighter than price talk of mid-swaps plus 240 bps to 250 bps.

The reoffer price was 99.533, resulting in a yield of 5.107%.

BNP Paribas, Deutsche Bank, HSBC and JP Morgan ran the deal, which was priced from a global medium-term notes program.

The National Agricultural Cooperative Federation is the Korean government's agricultural policy-making organization.

Central European Media upsizes

Central European Media Enterprises Ltd. priced an upsized €240 million add-on to its 11 5/8% senior secured fixed-rate notes due Sept. 15, 2016 (B2/B/) at 102.75 on Wednesday, according to market sources.

The deal priced in the middle of the 102.50 to 103 price talk.

Deutsche Bank Securities, Bank of America Merrill Lynch and BNP Paribas were joint bookrunners.

Proceeds will be used to redeem all the outstanding €181.8 million of 8¼% senior notes due 2012, and for general corporate purposes.

The original $200 million issue priced at 98.261 to yield 12% on Sept. 10, 2009.

The media company is based in the Czech Republic.

Eurasian Development up 2½

Late Tuesday Eurasian Development Bank priced a $500 million issue of five-year senior notes (A3/BBB/BBB) at par to yield 7 3/8% on Tuesday, according to a market source.

The yield came 25 basis points tighter than the original 7¾% area price talk.

Deutsche Bank, JPMorgan and RBS Securities Inc. ran the Rule 144A and Regulation S deal.

A trader in London reported traded quite a lot of it on Wednesday.

The new EBD bonds got as high as 103¾ bid during the Wednesday session, said the trader, who spoke just after the London close.

They closed the European session at 102½ bid, 103 offered, up 2½ points.

"It was a small deal that went very well," said the trader.

"It was cheap and it flew out the door."

Elsewhere the trader saw Eastern European corporate bonds a touch weaker on Wednesday.

Arcados Dorados sets talk

Arcos Dorados BV launched a $450 million offering of 10-year senior notes (Ba2//BBB-) at 7 5/8% on Wednesday, according to an informed source.

The size of the deal will not grow.

The interest rate at which the deal was launched is 37.5 bps lower than the initial guidance of 8% area, which was heard earlier in the week.

The Rule 144A and Regulation S deal is expected to price Thursday morning.

Morgan Stanley and Bank of America Merrill Lynch are active bookrunners for the Rule 144A and Regulation S offering. Citigroup, Banco Itau, Banco Santander and Scotia Capital are passive bookrunners.

The notes come with five years of call protection.

The company, which owns the license to operate McDonald's restaurants throughout Latin America, operates out of Buenos Aires, Argentina.

Pacific Rubiales runs non-deal roadshow

Pacific Rubiales Energy Corp. will begin a non-deal roadshow on Monday in London, according to a market source.

Bank of America Merrill Lynch will lead the presentations.

Subsequent dates are set for Tuesday in London, Wednesday in Boston, Sept. 30 in New York, Oct. 1 in Los Angeles and Oct. 2 in San Francisco.

The issuer is Colombia's second largest oil and gas company.

© 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.