Emerging Markets: Pemex, Alsea bring benchmark deals; deal calendar thins ahead of year-end

By Rebecca Melvin

Concord, N.H., Dec. 10 – Two issuers from Mexico brought sizable deals to market this past week as the new deal calendar ticked lower ahead of the mid-December mark, according to Prospect News’ data.

The new deal calendar was thinning ahead of anticipated vacations for the Christmas and New Year’s holidays. Both emerging markets equity and bond funds experienced net redemptions this past week, according to data-tracker EPFR on Friday.

But U.S. equity markets rebooted followed a skid the week before on fears the new Omicron variant could torpedo global economic growth.

Early in the week Petroleos Mexicanos SAB de CV (Pemex) priced a $1 billion long 10-year note with a 6.7% coupon, which came top of price talk, and Mexico-City based restaurant operator Alsea SAB de CV priced $500 million of senior unsecured notes due 2026 (B1//BB-).

Banco de Chile sold $500 million of 2.99% 10-year notes in the Monday market. And the Republic of Chile sold a local-currency denominated issue equivalent to $1.25 billion to fund social programs.

China was uncharacteristically quiet, although China’s Powerlong Real Estate Holdings Ltd. sold a $150 million add-on to its 6¼% senior notes due Aug. 10, 2024 (B2) – the second such add-on for a deal that priced originally in August 2020. The latest add-on priced at 87.238, according to an announcement.

The new notes for the Hong Kong-based real estate company will be used refinance existing debt that become due within one year.

There were a few notices among distressed issuers. Sunshine 100 China Holdings Ltd. said it was unable to repay the principal amount and the accrued interest due on its 10½% senior notes due 2021 (ISIN: XS1833288597) at their maturity on Dec. 5.

The Beijing-based property developer cited liquidity issues arising from the macroeconomic environment.

The event of default will also trigger cross default provisions under some other debt instruments. As of Monday, however, the company has not received any notice regarding action to accelerate by any creditors.

The total outstanding principal of the 10½% notes as of Dec. 6 is $170 million, and the total accrued interest on the notes is $8,925,000.

In addition, Golden Wheel Tiandi Holdings Co. Ltd. disclosed that it was in talks with some beneficial holders of three series of notes to amendment terms such as the maturity dates, according to a press release on Monday.

The company is seeking to amend its 12.95% senior notes due 2022 (ISIN: XS2100655807), its 14¼% senior notes due 2023 (ISIN: XS2199251823) and its 16% senior notes due 2023 (ISIN: XS2348197554).

The 16% notes were issued in a previous exchange offer to noteholders who tendered their 2022 notes and 2023 notes for new notes.

By Friday, the Hong Kong-based commercial and residential property developer said it was nearing a final consensual arrangement on the paper but also announced that it would not make the upcoming interest payment due on the $144,999,000 outstanding principal amount of its 16% senior note.

The interest payment was due on Saturday and payable on Monday.

Pemex prices $1 billion notes

Pemex priced $1 billion of 6.7% notes due Feb. 16, 2032 (Ba3/BBB) at 99.976, according to a press release.

The notes are guaranteed by subsidiaries Pemex Exploracion y Produccion, Pemex Transformacion Industrial and Pemex Logistica.

They were talked at a yield in the high 6% area.

BofA Securities, Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and HSBC acted as joint bookrunners on the Regulation S and Rule 144A deal.

The proceeds of the notes will be used to pay the cash consideration of the company’s exchange of 12 series of notes and purchase of six series, which the company says will improve its financial position.

The new notes will be listed on the Luxembourg Stock Exchange and traded on the Euro MTF market of the exchange.

Principal on the new notes will be repaid in three installments on Feb. 16, 2030, Feb. 16, 2031 and at maturity.

Pemex is a Mexico City-based state-owned oil and gas company.

Alsea sells $500 million notes

Alsea priced $500 million of senior unsecured notes due 2026 (B1//BB-) earlier this week.

The notes, which are guaranteed by Alsea’s operating units, are callable after Dec. 14, 2023.

The proceeds will be used to refinance medium-term debt, according to a company release on Tuesday.

BBVA, BofA Securities (B&D), Santander and Scotiabank were active bookrunners. They were joined by BCP Securities, MUFG, Rabobank and SMBC acting as passive bookrunners.

DLA Piper, Skadden y Garrigues was legal advisor to the company.

Based in Mexico City, the restaurant operator’s brands include Starbucks, Chili’s, Domino’s Pizza and P.F. Chang’s.

Banco de Chile

Banco de Chile sold $500 million of 2.99% 10-year notes in the Monday market, according to information from a market source. The notes priced with a Treasuries plus 185 basis points spread, 15 bps low to talk in the 200 bps area.

BofA Securities, Citigroup, Goldman Sachs and JPMorgan were the bookrunners.

The financial services company is based in Santiago, Chile.

© 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.