Oman Electricity sells $500 million notes, trades with ‘very good flow’; Enjoy taps market

By Colin Hanner

Chicago, May 10 – Emerging markets saw at least one new benchmark deal come to market on Wednesday from Oman Electricity Transmission Co. SAOC, which sold $500 million of 5.196% 10-year notes at par, the company said in a news release.

Initial price talk for the notes (//BBB) was in the mid-swaps plus 300 basis points area, a market source said.

The Rule 144A and Regulation S deal was priced via OmGrid Funding Ltd.

J.P. Morgan Securities plc and Bank Muscat are the stabilizing managers for the deal.

The notes are expected to settle on May 16.

After the issue priced, a market source said there was “very good flow” for the bonds, quoting them at 101.10 bid, 101.20 offered during afternoon trading. Another market source quoted the bonds at 101 bid, 101.20 offered.

“The new [Oman Electricity] opens well following the positive tone in Asia,” a market source said. “Seeing early retail interest and getting the feeling allocations were skinny all round. The name does trade very well [versus] the sovereigns on technicals.”

By comparison, Oman’s 3 7/8% notes due 2022 were up by nearly 1 point to 100.93 bid, 101.43 offered.

The sovereign’s 4¾% notes due 2026 were up 10 bps to 100.65 bid, 100.75 offered.

Enjoy goes down

Santiago, Chile-based hotel and casino operator Enjoy SA priced $300 million 10½% five-year notes (B-/B) at par on Wednesday, a market source said.

The downsized Rule 144A and Regulation S deal was originally sought at $330 million, a market source said.

Morgan Stanley and Credit Suisse were global coordinators and bookrunners for the deal. BTP Pactual and Banco Bilbao were also bookrunners.

S&P Global Ratings said proceeds of the deal will be used to execute the put option by Caesars' for a 55% stake in Baluma SA (Enjoy Conrad), which is the company's main EBITDA contributor.

Brazil, Mexico faring better

Brazil sovereign bonds “opened stronger off the blocks,” a market source said. “We saw a little demand early, but slightly better selling at higher prices since.”

Brazil’s 5 7/8% notes due 2019 were quoted at 106.55 bid, 106.90 offered.

The 6% notes due 2026 were quoted at 108.85 bid, 109.20 offered.

And its 5 5/8% notes due 2041 were quoted at 98.10 bid, 98.95 offered.

In Mexico, “prices are higher, certainly for some bonds that were particularly beaten up yesterday, like [the 4¾% notes due 2044] and the [4.6% notes due 2046],” a market source said.

The 4¾% notes were quoted at 97.85 bid, 98½ offered.

And the 4.6% notes were quoted at 95.80 bid, 96.45 offered.

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