Single-B credits target debt market
Investor appetite for high-yield deals this year is encouraging lower-rated borrowers to come to the bond market
Mexican miner Cobre del Mayo (CDM) was due
to price a
$225 million 5-year bond later Thursday. The deal
represents a debut for the B3/B debut credit, and would be part
of a steady stream of high-yield issuance that is now reaching
into single B territory.
Also, Peru’s Andino
Investment Holding (AIH) was expected to price a
transaction of more than $130 million as soon as this
afternoon. The B+/BB minus trade and transportation holdco is
looking to follow a sale through its Terminales Portuarios
Euroandinos unit done last year.
Brazil’s CBC Ammo also is
targeting a bond, as soon as Friday. The issuer, an
small-caliber ammunition maker with global sales, is hoping to
lure buyers to a 2021 bond of up to $250 million.
The transactions will look to build off of
the momentum of Latam’s
$450 million ticket and cargo revenue securitization and a
$150 million debut from Guatemalan Banco de los
Trabajadores done earlier this week in the double-B space.
In the double-B space, sugar exporter
Ingenio Magdalena plans to bring out
$400 million bond, another debut, as soon as this week.
Investment-grade issuers on tap included
Mexico’s Fresnillo, as soon as today, and
Single B issuance is ahead of 2012’s pace,
according to Dealogic data. Issuer’s have sold
$11.61 billion in 31 transactions this year through Wednesday,
up from $7.92 billion from 20 in the corresponding period in
2012. This year’s single B total comes out of a
$20.60 billion high yield volume and overall cross-border DCM
volume of $109.70 billion. LF