Mexican issuance continues to move at a good clip. Recurring market visitor Su Casita closed its second fixed-peso RMBS via Credit Suisse on Nov. 16 for a total Ps703 million ($64 million). With a 26-year legal final, the Ps621 million A tranche secured triple-A national scale ratings from all three major rating agencies and priced at 8.66%. That was a yawning 149 basis points inside Su Casita's first fixed-peso issue, which amounted to Ps525 million, had a 25-year legal final and priced last April. The tightening suggests investors aren't having any problem stomaching the heavy volumes of real estate-related deals that have hit the market over the past several months.
The only other issuer in Mexico's market to collateralize its fixed-peso loan is state agency Infonavit. So far the overwhelming majority of RMBS have been in inflation-indexed units (UDIs), reflecting the denomination of most loans originated by the group of nonbank financial institutions known as Sofols.
Meanwhile, media empire Television Azteca closed a Ps4 billion, 14-year legal final transaction via local brokerage Value. Rated only by Fitch Ratings, which gave it a national scale AA(mex)', the deal priced at 148 basis points over 28-day TIIE. The collateral consists of airtime to be purchased by advertisers.
With the proceeds, the company repurchased costlier outstanding bonds backed with the same collateral. The redeemed securities were a Ps1 billion seven-year legal final transaction that priced at 173 basis points over 28-day TIIE in December 2005, a Ps1.4 billion 6.3-year legal final deal that priced at 215 basis points over in September 2005, and a Ps2 billion, seven-year deal that priced at 270 basis points over in December 2004.
Azteca reaches a third of the national television market through Channels 7 and 13. The company runs one of the most extensive Spanish-language media empires in the world.
Elsewhere in Mexico, toll road operator Autopistas y Libramientos priced a second deal backed by toll road receipts generated along a stretch of highway linking the city of Tepic in the state of Nayarit with Villa Union in Sinaloa.
Led by Inversora, the 15-year legal final transaction was sized at 173 million UDIs ($59 million) and priced at a real rate of 5.75%. The only agency to provide a rating was Moody's Investors Service, which graded it Aa3.mx' on the national scale. The closing date was Nov. 17.
The operator of the transaction is a unit of Impulsora del Desarrollo Economico de America Latina (IDEAL), which is, in turn, part of Grupo Financiero Inbursa. Carlos Slim Heliu, one of the world's wealthiest men, owns Inbursa.
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