EM LATAM CREDIT: Pluspetrol: New Issue Tap USD150mn Fair Value
(PLUSPE; B3/-/BB)
"*NEW DEAL: PLUSPETROL MAX. $150M TAP OF 7NC3 DUE 2032 8.75% AREA" – Bbg
IPTs: 8.75%
FV: 8.5% Area
• Argentina privately held oil and gas exploration and production company Pluspetrol proposed to tap for USD150mn its senior unsecured 7NC3 year notes.
• PLUSPE 32s were last quoted at 8.21%. At the time of pricing the original deal May 22 at 8.75%, Vista Energy Argentina (VISTAA; Caa1 /NR /BB-) 2035s were quoted at 8.13%, a spread of 62bp.
• We currently see the VISTAA 35s quoted 8.14%, though we would think less concession might be required because the issuer is only attempting to place USD150mn rather than the initial USD450mn and the name is a bit better known now that the bonds have been in the market for a month already.
• Argentina government-controlled energy company YPF (YPFDAR; Caa1 /B- /CCC) had 2031 bonds quoted 8.11%, 64bp inside of PLUSPE 32s pricing, which are now quoted 7.81% so using that same spread would imply 8.45% for the PLUSPE tap.
• Please see our fair value post for the initial deal in May for more information: https://mni.marketnews.com/45jUd0w
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JGB TECHS: (M5) Rallies off Lows
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