Peñoles goes on the road for new bonds

Peñoles goes on the road for new bonds

Bonds Debt Capital Markets Fixed Income Mexico US

Mexico's Peñoles has booked meeting with investors next week to market a $600m dollar bond and raise money to pay off debt, a bond banker on the deal told LatinFinance.

"There are two teams that will meet investors from Monday through Wednesday. One team will be in London on Monday and then in Boston and New York on Tuesday and Wednesday. The other will go to Los Angeles on Tuesday and New York on Wednesday," the banker said.

Peñoles has hired Bank of America, Goldman Sachs, JPMorgan, Santander and Scotiabank to coordinate the bond deal, which is expected to price on September 5.

Peñoles, a subsidiary of Grupo Bal, could increase the size of the transaction on high demand, the banker said. The bookrunners will use notes from the silver mining unit Fresnillo to calculate the coupon and the yield on the upcoming notes, he added.

Fresnillo issued $800m in 10-year notes at 300bp over US Treasury notes in November 2013, but those notes were recently seen trading at 185bp over Treasuries, the banker said.

Peñoles will use the proceeds to refinance dollar-denominated notes in the local market, including $400m in 2020s and $200m in 2022s, the banker said.

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