Oman’s triple-tranche deal trades mixed; Latin America deals price as rates come back in

By Rebecca Melvin

New York, Jan. 11 – Oman’s new $6.5 billion of notes in three tranches traded mixed on Thursday upon release for secondary market dealings, according to a market source.

Elsewhere, Latin America was active as three deals on the calendar priced and one deal launched with pricing expected later Thursday as U.S. Treasury rates came back in from a jump up on Wednesday. No new announcements for upcoming issues were heard for Latin America, however.

The new Oman five-year notes slipped from initial pricing while the 10-year and 30-year maturities lifted.

The sovereign’s older notes were mostly slightly wider in terms of spread, but the near-dated 3 5/8% notes due 2021 were 1.6 basis points tighter, and the far-dated 6½% notes due 2047 were also slightly tighter.

The new 4 1/8% notes due 2023 were seen in the market at 99.38 bid, 99.47 offered, which was off slightly from 99.549 where they initially priced.

But the new 5 5/8% notes due 2028 were at 99.95 bid, 100.05 offered, which was a little higher than their 99.803 pricing point. And the 6¾% notes due 2048 were seen at 99.62 bid, 99.97 offered, which was about a point higher than the 98.796 new issue price point.

In Latin America, three deals priced well and at the upper ranges of expected deal size. Both Marfrig Global Foods SA and BBVA Bancomer SA priced $1 billion deals, and Nemak SAB de CV brought a $500 million issue. Rede D’Or Sao Luiz SA was pricing at the end of the session, but final terms were not heard by Prospect News’ deadline.

The market righted itself after some turbulence on Wednesday amid fears that the United States was planning to pull out of negotiations on the North American Free Trade Agreement. Those fears were put to rest on Thursday, at least for now.

Thursday’s session represented a “benign environment,” a New York-based market source said, with emerging market investors using the drifting upward in rates over the last two days as “as a buying opportunity to bulk up on EM credits.”

Sao Paulo-based food processing company Marfrig priced seven-year notes at 98.641 for a yield of 7 1/8%. The Rule 144A and Regulation S notes are non-callable for three years.

Proceeds will be used for liability management, funding the tender offer for its outstanding notes due in 2018 and 2019.

Brazilian hospital operator Rede D’Or was also pricing up to $500 million of seven- or 10-year notes.

There were also two new issues from Mexico. BBVA Bancomer launched on Thursday $1 billion of 15-year tier 2 subordinated capital notes to yield Treasuries plus 265 bps, according to a market source.

Final terms were expected to be set late Thursday.

Pricing was coming at the tight end of guidance for a yield of Treasuries plus 270 bps area plus or minus 5 bps, which was revised down from initial talk of Treasuries plus 300 bps.

BBVA Securities, BNP Paribas, BofA Merrill Lynch and JPMorgan were bookrunners of the Rule 144A and Regulation S notes.

BBVA is a Mexico City-based financial institution.

And finally, Nemak priced $500 million seven-year notes at par to yield 4¾%,.

The notes are non-callable for three years.

The automotive part manufacturer has earmarked proceeds to refinance its existing $500 million 5½% notes due 2023.

Pricing of the new notes came at the tight end of guidance, which was for a yield in the 4 7/8% area, plus or minus 12.5 bps.

© 2015 Prospect News.
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