Bloomberg News

Atlantic Power Plans Sale of Notes Due in 2018: New Issue Alert

October 19, 2011

Oct. 19 (Bloomberg) -- Atlantic Power Corp., the power producer that’s acquiring Capital Power Income LP, is among borrowers planning to sell at least $3.96 billion of bonds in the U.S., according to data compiled by Bloomberg.

There were no corporate bond sales in the U.S. yesterday, Bloomberg data show. Companies have issued $933 billion of bonds this year, compared with $919.7 billion in the similar period of 2010.

Following is a description of pending sales of corporate and other bonds.

Investment Grade

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT, a unit of the World Bank, plans to sell two-year global notes in a benchmark offering, according to a person with knowledge of the transaction. The notes may yield about 26 basis points more than similar-maturity Treasuries, said the person, who declined to be identified because terms aren’t set.

(Added Oct. 19. See {7915Z US <Equity> CN <GO>}.)

CENTRAIS ELETRICAS BRASILEIRAS SA, Latin America’s largest publicly traded utility, hired Credit Suisse Group AG and Banco Santander SA to arrange meetings with bond investors in Europe and the U.S., according to a person familiar with the discussions. Eletrobras, as the company is known, plans to sell 10-year dollar bonds after the meetings, said the person, who declined to be identified because discussions are private. The company has a Baa2 grade from Moody’s Investors Service and BBB- foreign issuer credit from Standard & Poor’s, Bloomberg data show.

(Added Oct. 18. See {ELET3 BZ <Equity> CN <GO>}.)

BANCO DE BOGOTA SA, the unit of Grupo Aval Acciones y Valores, plans to sell $1 billion of 10-year senior unsecured notes denominated in U.S. dollars, Moody’s Investors Service said on Sept. 22. Moody’s said that it would rate the proposed notes Baa2.

(Updated Sept. 26. See {BOGOTA CB <Equity> CN <GO>.)

TRITON CONTAINER INTERNATIONAL LTD, the world’s largest owner-lessor of marine intermodal cargo containers, plans to sell $180 million of senior notes, according to a statement distributed by Standard & Poor’s. S&P assigned a BBB issue-level rating to the notes from the San Francisco-based company, which leases dry van, open top and flat rack containers.

(Added Sept. 28. See {0870Z US <Equity> CN <GO>}.)

Split-Rated

UNION BANK OF INDIA LTD., the Mumbai-based lender that went public in 2002, hired banks to help it arrange a series of credit investor meetings in Asia and Europe, according to a person with knowledge of the transaction. The bank may consider a sale of dollar bonds thereafter subject to market conditions, the person said, asking not to be identified as details are private. Bank of America Corp., Barclays Plc, Citigroup Inc., HSBC Holdings Plc, Deutsche Bank AG and Standard Chartered Plc are helping to arrange the meetings, the person said. The bank is rated Ba1 by Moody’s and BBB- by S&P.

(Added Sept. 6. See {UNBK IN <Equity> CN <GO>}.)

Not Rated

CHESAPEAKE OILFIELD OPERATING LLC, a unit of Chesapeake Energy Corp., plans to issue $500 million of senior notes due in 2019, according to a person familiar with the offering. Proceeds may be used to redeem intercompany debt owed to Chesapeake Energy, said the person, who declined to be identified because terms aren’t set.

(Added Oct. 19. See {CHK US <Equity> CN <GO>}.)

BANCO BICE plans to sell $120 million of five-year bonds denominated in U.S. dollars, said Diario Financiero, citing the Santiago-based lender.

(Added Sept. 14. See {BICE CI <Equity> CN <GO>}.)

UCO BANK, a Kolkata, India-based state-owned bank, plans to meet with debt investors in Hong Kong, London and Singapore ahead of a possible sale of bonds denominated in U.S. dollars, according to a person with direct knowledge of the matter. BNP Paribas, Citigroup Inc., HSBC Holdings Plc, JPMorgan Chase & Co. and Standard Chartered Plc will arrange the so-called non-deal roadshows, said the person, who asked not to be identified because he is not authorized to speak on the matter.

(Added Sept. 14. See {UCO IN <Equity> CN <GO>}.)

PRONACA will sell $50 million in bonds to help refinance existing debt, the Bolsa de Valores de Quito said. Ecuador’s biggest food processing company will sell the bonds, which have maturities ranging from 3.2 years to 5.9 years, to yield between 6.25 percent and 7.25 percent, the exchange said in an e-mailed statement.

(Added Aug. 30. See {0022505Z ED <Equity> CN <GO>}.)

AKKORD INDUSTRY CONSTRUCTION I, a civil engineering firm based in Baku, Azerbaijan, plans to sell $100 million of bonds in U.S. dollars, according to data compiled by Bloomberg. The notes will be due in three years, the data show.

(Added Aug. 8. See {www.akkord.az/}.)

High Yield

ACADIA HEALTHCARE CO., the operator of behavioral health centers, plans to sell $150 million of senior unsecured seven- year notes to help fund its merger with PHC Inc., according to a person with knowledge of the transaction. Jefferies Group Inc. is managing the sale, said the person, who declined to be identified because terms aren’t set. Moody’s gave a B3 grade to the proposed debt while S&P assigned a B- preliminary rating to the securities.

(Added Oct. 18. See {737913Z US <Equity> CN <GO>}.)

ATLANTIC POWER CORP., the power producer that’s acquiring Capital Power Income LP, plans to sell $460 million of senior notes due in 2018, according to a statement. Proceeds will be used to fund a cash portion of the acquisition, to pay outstanding debt under Capital Power’s revolving credit line, and possibly to fund additional growth opportunities and general corporate purposes, the Boston-based company said in the statement.

(Added Oct. 18. See {AT US <Equity. CN <GO>}.)

J.M. HUBER CORP., the maker of ingredients used in jellies, beverages and toothpaste, plans to sell $225 million of eight- year senior notes that will be non-callable for four years, according to a person with knowledge of the transaction. The Edison, New Jersey-based company plans to use proceeds to pay back outstanding borrowings on a revolving credit line and to maintain liquidity before $125 million of debt matures in October 2012, said the person, who declined to be identified because terms aren’t set.

(Added Oct. 18. See {3095Z US <Equity> CN <GO>}.)

KINETIC CONCEPTS INC., the wound-care company that’s being purchased by Apax Partners Inc., plans to sell $1.65 billion of senior secured notes denominated in euros and dollars. The company canceled plans to issue $900 million in unsecured bonds denominated in dollars, according to a person familiar with the offering who declined to be identified because terms aren’t set. Moody’s assigned the debt a grade of B3 and S&P ranked them.

(Added Oct. 11. See KCI US .)

VIETNAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE, or VietinBank, may offer a coupon of 5 percent to 6 percent on its planned $500 million overseas bond sale, Chairman Pham Huy Hung said in an interview in Hanoi on Sept. 15. The lender is “determined to sell the bonds within this year,” said Hung.

(Updated Sept. 19. See {CTG VN <Equity> CN <GO>}.)

MANNKIND CORP., the biotechnology company founded by billionaire investor Alfred Mann, plans to raise $370 million by selling senior secured discount notes due 2017, the Valencia, California-based firm said in a Sept. 23 statement distributed by Business Wire. Proceeds may be used to complete Phase 3 clinical trials of MannKind’s lead product candidate, Afrezza, preparing for the commercialization of Afrezza, continuing to build out a Danbury, Connecticut, factory and for research and development, according to the statement.

(Added Sept. 26. See {MNKD US <Equity> CN <GO>}.)

EMPRESA DE ENERGIA DE BOGOTA SA, Colombia’s second-biggest electricity transporter, hired Deutsche Bank AG and Banco Santander SA to sell bonds overseas, according to a person familiar with the offering. Bogota-based EEB, as the utility is known, may seek to sell bonds that mature in 10 years, said the person who declined to be identified because terms aren’t set.

(Added Aug. 22. See {EEB CB <Equity> CN <GO>}.)

YPF SA, Argentina’s dominant integrated oil company, may sell $300 million to $600 million of dollar-denominated eight- year notes, according to a July 8 note from Fitch Ratings, which rates the bonds BB-. The proceeds of the offering of senior unsecured notes may be used for general corporate purposes, mainly capital investments and working capital needs, according to the note.

(Added July 12. See {YPFD AR <Equity> CN <GO>}.)

PROBUSINESSBANK hired BCP Securities LLC and UBS AG to arrange meetings with investors in Asia and Europe for a possible sale of bonds in dollars, said a banker with knowledge of the deal, who declined to be identified because terms aren’t set. The Russian lender is rated B2 by Moody’s.

(Added June 3. See {PBZB RU <Equity> CN <GO>}.)

Offerings in Pipeline

UNITED TECHNOLOGIES CORP., the maker of Pratt & Whitney jet engines, may raise $12 billion of debt to help finance its $16.5 billion acquisition of Goodrich Corp., Chief Financial Officer Greg Hayes told analysts on a conference call on Sept. 22. Most of the debt will mature within five years, he said.

(Added Sept. 26. See {UTX US <Equity> CN <GO>}.)

CODELCO, the world’s largest copper producer, will look to sell bonds to help finance a record $4 billion investment in its Chilean mines next year, Chief Executive Officer Diego Hernandez said.

(Added July 11. See {1006Z CC <Equity> CN <GO>}.)

ENTERGY LOUISIANA LLC, the unit of the New Orleans-based power company, plans to sell about $206 million of bonds, according to a company statement. The offering was delayed and reauthorized after the utility violated regulations by publicizing the sale in the wrong newspapers, the Associated Press said on Aug. 11.

(Updated Aug. 17. See {ETR US <Equity> CN <GO>}.)

ISLAMIC BANK OF THAILAND, the nation’s state-owned bank, may sell $150 million of Sharia-compliant bonds overseas, the bank’s president Dheerasak Suwannayos, told reporters.

(Added June 30. See {6550Z TB <Equity> CN <GO>}.)

DOLPHIN ENERGY LTD., the Dubai-based natural gas producer, will be “actively monitoring the market” and will release terms on its planned dollar benchmark bond issue in an “appropriate window of execution,” the company said in an e- mailed statement.

(Added June 28. See {248682Z QD <Equity> CN <GO>}.)

ABU DHABI may sell an international bond, Lars Boman, senior adviser at Abu Dhabi’s Debt Management Office, told a Euromoney conference in London.

(Added June 23. See {TNI ABUDHABI NEWBON CN <GO>}.)

ROMANIA has started work on upgrading its medium-term note program to include dollar-denominated notes, Deputy Finance Minister Bogdan Dragoi said at a conference in Bucharest. The ministry will have the option to sell bonds in either dollars or euros, he said.

(Added June 20. See {1089Z RO <Equity> CN <GO>}.)

THE NETHERLANDS may sell “a few billion” of dollar- denominated bonds this year, according to the Dutch State Treasury Agency. The securities are likely to have five-year maturities, Peter Nijsse, the head of cash management, issuance and trading at the agency, said in an interview following a media presentation in London on June 10. The Netherlands is rated AAA by Standard & Poor’s and Aaa by Moody’s Investors Service.

(Added June 13. See {TNI NETHER NEWBON <GO>}.)

CODERE SA, Spain’s only publicly traded gambling operator, may sell its first dollar-denominated bonds to refinance existing debt in euros, Chief Financial Officer David Elizaga said in an interview. Codere, which has 760 million euros ($1.1 billion) of bonds maturing in 2015, will sell “certainly a minimum of $400 million” in the securities that will help the company buy back debt and extend maturities to 2018 or 2019, he said.

(Added June 9. See {CDR SM <Equity> CN <GO>}.)

EL TEJAR SA, the world’s largest grain producer, plans to sell as much as $300 million of bonds in the U.S. this year before a planned initial public offering, according to the company’s chief financial officer. The Buenos Aires-based company could accelerate plans for the IPO depending on investor reaction to the sale of between $200 million and $300 million of bonds maturing in seven to 10 years, Chief Financial Officer Mario Lorencatto said.

(Added May 10. See {2334604Z AR <Equity> CN <GO>}.)

BHARTI AIRTEL LTD., India’s biggest mobile-phone operator, plans to raise $750 million selling its first overseas bonds, according to Fitch Ratings. Fitch graded the notes BBB-, the lowest investment grade, according to a statement from the ratings company.

(Added May 2. See {BHARTI IN <Equity> CN <GO>}.)

CHINA AUTOMATION GROUP LTD. plans to issue $200 million of senior notes due 2016 to yield 7.75 percent, the company said in a statement to the Hong Kong stock exchange on April 14. UBS AG will lead the sale of the issue, for which conditions and terms are yet to be decided, it said.

(Updated May 16. See {569 HK <Equity> CN <GO>}.)

ASTON RESOURCES LTD., the Australian mineral exploration company, is considering selling bonds in the U.S. to help raise funds to develop its Maules Creek coal project in New South Wales, Chief Executive Officer Todd Hannigan said at a business luncheon in Sydney on March 3. Aston may raise $300 million to $500 million, he said.

(Added March 7. See {AZT AU <Equity> CN <GO>}.)

MONGOLIA is planning its first sale of sovereign bonds, seeking about $500 million, to establish a benchmark that would help companies from the resource-rich nation located between China and Russia raise funds from credit markets. The issue will be used to finance expansion of the mining industry and build roads and bridges, President Tsakhia Elbegdorj said in an interview at Bloomberg’s headquarters in New York.

(Updated June 20. See {NI MONGOL <GO>}.)

AVG TECHNOLOGIES, the Czech maker of Internet security software, plans to sell bonds to U.S. investors to raise money for dividends and acquisitions, Siobhan MacDermott, AVG’s Prague-based investor relations officer, said in an interview Feb. 10. The producer of a free antivirus program that competes with McAfee Inc. and Symantec Corp. is seeking to raise $300 million of debt, MacDermott said.

(Added Feb. 14. See {3412012Z CP <Equity> CN <GO>}.)

TATA STEEL LTD., India’s biggest producer of the alloy, plans to sell $500 million of debt by the middle of this year, CNBC-TV18 news channel reported, without saying where it got the information.

(Added Feb. 9. See {TATA IN <Equity> CN <GO>}.)

GAIL INDIA LTD., the nation’s largest natural gas distributor, plans to borrow $300 million overseas, P.K. Jain, director of finance, said in a telephone interview on Sept. 12.

(Updated Sept. 19. See {GAIL IN <Equity> CN <GO>}.)

AL BARAKA BANK EGYPT ESC, a unit of Bahrain-based Albaraka Banking Group, may sell dollar-denominated Islamic bonds in the second half of 2011, the bank’s chairman said Sept. 29. The bank hasn’t decided on the size of the bond, he said.

(Added Sept. 30. See {BARKA DU <Equity> CN <GO>}.)

--Editor: Mitchell Martin, Cecile Gutscher

To contact the reporter on this story: Tim Catts in New York at tcatts1@bloomberg.net.

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net.


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