Venezuela benchmark drops 10% on week; Atlantida, Creditvalores price; Atento eyes deal

By Rebecca Melvin

New York, July 21 – A sharp selloff in Venezuela and Petroleos de Venezuela SA bonds tapered off on Friday after intensifying on Thursday, but investors remained nervous heading into the weekend about the prospect of sanctions against the country by the United States and possibly other nations.

Much of the curve for the sovereign debt, as well as that of the state-owned oil company, fell 10% over the past week.

The worst of the selling occurred on Thursday with more “mixed flow” seen on Friday, the trader said.

Venezuela’s benchmark 2027 bonds were last seen at 45½ bid, 46 offered on Friday afternoon, compared to 51 a week ago, according to a market source. A second trading source put the level on the 2027s at 46 bid, 47 offered.

Elsewhere in Latin America, Honduras’ Inversiones Atlantida priced $150 million 8¼% five-year senior notes at 98.99 to yield 8½% on Friday via bookrunner Oppenheimer & Co. Inc.

Creditvalores-Crediservicios SAS of Colombia also priced a deal – $250 million of 9¾% five-year notes (expected ratings: /B+/B+) at 99.035 to yield 10%.

And Atento SA was set to start a roadshow on Monday for an offering of five-year senior secured notes.

Earlier in the session, West African Development Bank’s newly priced 5% notes due 2027 traded up from issue price but remained under par after the lender priced $850 million of the senior notes at 98.074.

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