Mensajepor mandraque » Mar Jun 02, 2015 12:32 pm
El Manco sale a manguear..Que bueno ..me quedo mas tranquilo con la deuda provincial...
EW YORK, June 2 - The Province of Buenos Aires is looking to issue a new US-dollar denominated international bond as it faces a spike in debt payments this year.
The province, rated Caa2/CCC- by Moody's and S&P, has set initial price thoughts of mid 10% area on the issue, which will have a final maturity of six years and is expected to have a benchmark size.
Principal on the notes will be repaid in two equal installments in 2020 and 2021, resulting in a slightly shorter average life of 5.5 years.
"At first glance mid 10% sounds fair," said one investor evaluating the issue. "They will come in the low 10%s, but that would still be fairly attractive."
As of late last year, the Province faced US$2.76bn of principal and interest payments in 2015, according to an investor presentation seen by IFR. Debt servicing costs are set to decline to around US$1bn in 2016 and to a similar amount in 2017.
Buenos Aires is also offering investors the opportunity to exchange up to US$500m of its outstanding 11.75% notes due in 2015 for newly issued additional notes.
BNP Paribas and Bank of America Merrill Lynch are the bookrunners on the transaction, which is expected to launch and price later on Tuesday. Banco de la Provincia de Buenos Aires is co-manager.