Banorte, Cordoba, KUO price deals in busy LatAm primary; LatAm secondary weaker

By Rebecca Melvin

New York, June 29 – In a burst of activity before financial markets are likely doused by vacation schedules surrounding the U.S. Fourth of July holiday, Latin American issuers priced three debt deals on Thursday for a combined $1.8 billion in new dollar-denominated paper.

The deals included $900 million in two tranches of perpetual notes by Mexico’s Banco Mercantil del Norte SA, $450 million of 5¼% 10-year notes by Mexico’s Grupo KUO SAB de CV and $450 million of 7 1/8% 10-year notes by Argentina’s Province of Cordoba.

Some of the new deals seemed to be doing well and “some seemed to be struggling,” a New York-based trader said of the new LatAm notes upon their release for secondary market trading.

“The Banorte stuff – the five- and 10-year – is doing well,” the trader said. But there was “a little bit of pressure [on Cordoba] and it was struggling around new issue price,” the trader said.

Demand may have been quenched by an abundance of Argentina issuance recently, the trader suggested.

LatAm a little weaker

Overall the Latin America market was a little weaker, especially as commodities started to sell off into the market close.

“Commodities were okay, but now they are rolling over,” a trader said shortly before the market close.

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