Global coordinators Morgan Stanley (billing and delivering), Bank of America Merrill Lynch and Société Générale have scheduled two days of investor meetings in London, starting on Monday. The roadshow will then move to Amsterdam and Paris on Wednesday, before wrapping up in Frankfurt on Thursday.
A €400m seven year non-call three 144A/Reg S senior unsecured bond is expected to follow, subject to market conditions. The company is unrated but bankers involved in the roadshow said they expected the bond to get ratings of B/B+.
It would be the first bond market outing for Isolux Corsán, a Spanish firm with operations spanning the concessions, energy, construction and industrial services sectors.
One banker added that investors would likely look for price benchmarks to outstanding bonds from fellow Spanish construction and concessions groups OHL and Abengoa.
OHL (Ba3/BB-) priced a €400m eight year non-call four issue at 4.75% on March 5, after attracting around €3.2bn of orders. Bankers on the deal said the yield was the lowest ever on a Spanish speculative grade bond.
Meanwhile, Abengoa has a €500m 8.875% February 2018 bullet outstanding. Of that, €250m was issued in January 2013 and the deal was tapped for €250m in September. The borrower is rated B2/B/B+, with a negative outlook from Standard & Poor’s.
Isolux Corsán was formed in 2004 when Corsán-Corviam was taken over by Isolux Wat. The group operates in 38 countries including India, Brazil and the US, and has an order backlog of more than €46.5bn.
The firm has a leading global market position in high voltage power transmission and the construction of solar photovoltaic plants, and also specialises in toll road construction and management.
In 2012 Isolux Corsán made €3.4bn of revenues and €521m of Ebitda. The proceeds of its proposed debut bond will be used to refinance bank debt and will make no change to the group’s leverage, which currently stands at 4.9 times Ebitda.