Category: Loans

Chilean power company Colbun has signed a 5 year loan for $150m at Libor plus 150bp, says a person familiar with the transaction. BBVA and Santander led, with Credit Agricole, Rabobank, Societe Generale, Bank of Tokyo and Scotia participating at the MLA level. HSBC and Banco de Chile were arrangers. Fees were 50bp for $30m commitments and 30bp for $15m tickets. The facility is to refinance part of a $400m loan done in 2008 that matures in 2013. Part of the facility has already been paid off, using $250m of a $500m bond due 2020 issued in January. The deal was Colbun’s first dollar bond sale. It came at 98.973 with a 6.000% coupon to yield 6.139%, or UST plus 237.5bp, well inside 262.5bp area guidance. Colbun has a capex pipeline, with a number of power plant projects planned. It will probably look to get project financing for that in the next 2-3 years, according to a banker familiar with the situation.

Chilean power company Colbun is expecting commitments this week on a loan it is syndicating, says a banker at one of the leads. BBVA and Santander are leading the $150m 5 year at Libor plus 150bp. The facility is to refinance part of a $400m loan taken in 2008 that matures in 2013. ABN, BBVA, Citi, Itau and Santander participated in that deal. “The loan was expensive and had restrictive terms, due to difficulties experiences as a result of a drought,” says a lead banker. “But the company has since benefitted from capital injections, so wants to get better financing.” Part of the facility has already been paid off, using $250m of a 2020 $500m bond issued in January. The deal was Colbun’s first dollar bond sale, and was more than 5x oversubscribed. It came at 98.973 with a 6.000% coupon to yield 6.139%, or UST plus 237.5bp, well inside 262.5bp area guidance. “The terms of the loan are quite competitive and the borrower likes to use a mixture of bank and capital market debt so chose to come to the loan market for refinancing the remainder,” adds the banker. Colbun has a capex pipeline, with a number of power plant projects planned. It will probably look to get project financing for that in the next 2-3 years, according to the banker.

Chilean power generation company Colbun is in the market sounding a 5 year $150m loan at Libor plus 150bp through BBVA and Santander. An investor relations official at the borrower declines to comment. Colbun signed a $400m 5-year syndicated loan through ABN, BBVA, Citi, Itau and Santander in 2008. It raised $500m via its first dollar bond sale in January this year, at a 2020 maturity. The deal was more than 5x oversubscribed and came at 98.973 with a 6.000% coupon to yield 6.139%, or UST plus 237.5bp, well inside 262.5bp area guidance.

Brazil’s Itau Unibanco is looking to the Asia market to close a $200m syndicated term loan by the end of July. The spread on the 3-year bullet, which was launched mid-June, is Libor plus 120bp. Between 5 and 10 banks are expected to participate, says a banker on the transaction. BNP Paribas is admin agent and MLA, joined by Mizuho as another MLA. Lead arranger fees are 40bp for commitments of $20m, arrangers get 35bp for $15m- $20m, lead managers get 30bp for $10m-$14m and managers will receive 22.5bp for $5m-$9m tickets. Proceeds will be used for general corporate purposes, says the banker on the deal.

CAF has secured $100m in 4-year money at Libor plus 60bp through a bullet loan syndicated mainly to Taiwanese banks. “This opens up a new relationship. CAF is very interested in tapping the investor base and there is a lot of liquidity there,” says a banker on the deal. “Taiwanese banks want to pick up yield and the Latin American market looks attractive. The increasing level of trade between Asia and Latin America means these banks are also keen to establish relationships,” he adds. Mizuho was mandated lead arranger and administrative agent on the transaction. Bank of Taiwan came in as lead arranger, while Chang Hwa Commercial Bank, Taiwan Cooperative Bank, United Taiwan Bank and Land Bank of Taiwan were arrangers. MLAs received fees of 100bp for a ticket over $10m. Arrangers got 90bp in fees for committing $5m-$10m. Proceeds will be used for working capital, says a banker on the deal. CAF sold a $74m 2014 bond into the Japanese market in May, priced at 99.98 with a 3.11% coupon to yield 3.12%. It was the first ever retail-only placement in the Japan market by a LatAm issuer, according to CAF.

Brazil’s Odebrecht is in the market with financing for platforms costing $1.35bn in total. It is heard seeking MLAs for $100m tickets to build a $860m commercial bank syndicate on a 12-year deal. Pricing during the sounding process is heard at 250bp over Libor for the 1-2-year construction period, 275bp for years 3-6, 300bp for years 7-10 and 325bp for years 11-12. An MLA fee of approximately 200bp is being offered, according to bankers familiar with the terms. There is also a $220m ECA tranche. Proceeds will be used to build 2 oil platforms, ODN 1 and ODN 2. BNP and HSBC are heard leading the process. “Pricing is getting aggressively lower in Brazil but it seems expensive compared to where Petroserv, who is a proven operator, is coming,” says a New York-based banker familiar with the transaction. Petroserv is said to be shopping a $460m facility for a $720m project. A price of Libor+290bp is rumored on the 6-year and Itau is understood to be holding $230m of the total. The deals mark an uptick in Brazil platform funding activity. Quiroz Galvao is heard looking to mandate a $700m+ 10-year deal for Alpha Star, which would also include ECAs, say bankers. A spread in the low 200s is rumored. This competing supply could affect participation in Odebrecht, as some portfolios could hit exposure limits, according to the New York-based banker. He adds that some lenders could may also have issues with the 20%-30% balloon structure. However, he says the facility may still be attractive from a relationship standpoint. “The size of the conglomerate means banks will participate because of the other opportunities it could offer,” he tells LatinFinance. “This is very much a relationship deal, which is what makes it appealing.”

Peru-based Pluspetrol Lote 56, a unit of Argentina’s Pluspetrol, has sold $124.5m in bonds in 2 tranches. A $27.5m 5-year tranche pays 300bp over 3-month Libor. Total demand was $32.8m. A $97.0m 10-year meanwhile pays 350bp over 3-month Libor. Total demand for that slice was $124.1m. Proceeds will be used to finance investments and working capital, the company says. Credibolsa handled the AAA rated issue.

Brazil’s Banco Fibra is out with a $90m A/B loan through the IFC, Itau and Santander. A $15m IFC 4-year is shopped at 275bp over Libor, while a $75m 2-year B tranche pays 210bp. It is expected to close shortly and be oversubscribed, according to a banker on the deal.

Petrobras is understood to be looking to close more large bilateral loans after recently closing a $1bn 7-year at Libor+179bp through Standard Chartered. Citi and other banks are believed to be working on similar facilities. Though the margin looks thin, the deal also carries fees and a banker familiar with the terms says it offers a decent pickup to the bond. Some loan market specialists say that Petrobras is incurring risk by leaning on relationships, and should look to diversify. “They are always doing bilats but they will definitely need to open up to other source of funding or pay up,” says a banker. “Banks are getting very full of the exposure,” the loans expert adds. Other Brazilian borrowers are heard pursuing a similar strategy. Votorantim is rumored to have secured 7-year money on a bilateral basis at 210bp and 8-year money at 225bp, also in $1bn clips from several banks. Facilities for Fibria were understood to have been wrapped in.