Brazilians Unigel and Braskem wrap bonds, loans
May 16, 2018 |
The petrochemical pair pulled together more than a billion from banks, investors, collectively
Unigel settled for a $200m 10.5% 2023 non-call three bond sale on Tuesday, pricing the paper in line with initial price talk (IPT) leads had set on Monday afternoon.
The Brazilian petrochemicals firm braved choppy market conditions and had little choice but to offer the bonds at 10.5%, or 99.934, after IPTs were set at 10% area, DCM sources confirmed.
Monday's IPTs came with a 2024 maturity, but two DCM sources confirmed Tuesday's final sale came with a five-year tenor.
In March, the petchems company attempted to sell $400m in 2025s and set IPT in the 8% area. Unfavorable conditions, however, led Unigel to cull the trade days later.
Unigel also guaranteed the revised bond sale alongside operating subsidiaries Acrilonitrila do Nordeste, Companhia Brasileira de Estireno, Proquigel Quimica and Plastiglas de Mexico, according to a report from Fitch Ratings.
The new paper also comes secured by fixed assets linked to Unigel's styrenics business and benefit from a second lien over assets currently pledged to EPP facilities.
Fitch said in its report that proceeds would refinance short-term debt and go towards general corporate purposes.
Braskem nets a billion
The fellow Brazilian petchem producer closed syndication on a five-year $1bn senior secured revolving credit facility (RCF) with 11 banks, according to sources familiar with the financing.
Six joint bookrunners and three mandated lead arrangers (MLAs) brought in Deutsche Bank as an additional MLA and Italy's Unicredit joined as a participant, said the sources.
Syndication was launched last month.
Proceeds will refinance a five-year $750m loan the petrochemical company obtained in 2014 at 160bp over Libor.
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