LatAm corporates, and specifically high-yield issuance,
continued to be the dominant theme in May and June after
initial optimism about single B borrowers ability to tap
DCM quickly faded in the wake of several postponed
In May, the market
welcomed junk names with open arms. Brazilian oil and gas
company OGX raised $2.56 billion, marking the first company
controlled by magnate Eike Batista to try its luck in the
international bond markets. While leads were forced to widen
pricing by 100 basis points, the deal was hailed as a victory
for single B issuers.
After setting a $2.0 billion size and whispering a 7.5%
yield, leads were forced to revise to 8.5% after struggling to
build a book among an investor base wary about an E&P
operation that had yet to produce and was unlikely to see cash
flow until 2014....
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