Rating: B1/B
Tranche 1: $255m
Maturity: 27 March 2014
Issue price: 100.00
Coupon: 8.00%. Call option at par in 2010.
Launch date: Tuesday 20 March
Payment date: 27 March
Tranche 2: Dominican peso equivalent of $150m
Maturity: 27 March 2012
Issue/re-offer price: 100.00
Coupon: 16%
Sole mgr: Citigroup.
Market appraisal:
"...it went well. They achieved an aggressive execution, although we heard they had to back it up a little bit from initial whispers."
"...it seemed to go very well. It was increased from $250m and from what I hear they had an order book of nearly $1bn. This is also the first ever 144A Reg S Dominican Republic peso tranche offered in the international markets.
As for the dollar deal, they went out with guidance of 8%-8.5% and this was priced at the tighter end. Both the US dollar and Dominican Republic peso tranches are now trading better, at around 102.00."
"...they ended up widening the yield talk slightly from around 7.5% because the market was weaker last week with equities, when they were marketing it.
In the end we have more than made up for it with the rally in the market this week. The dollar portion ended up being a little smaller because they decided to do a peso tranche.
It’s very hard for anyone to say what the local yield was in Dominican Republic pesos. I suspect it is something that a small group of investors played in.
But in general it seems like a decent deal for the company. It doesn’t have a great rating but that is obviously constrained by the sovereign, and it’s a sector that people love."