Pemex prices dual-tranche deal; Safra sells notes; Nostrum, First Abu Dhabi join calendar

By Rebecca Melvin

New York, Feb. 1 – Market players were taking a look early Thursday at the announced deal of Petroleos Mexicanos SAB de CV. Later the Mexican petroleum company priced $4 billion of global notes in two tranches well below initial price talk.

“We took a look at that this morning, and got an understanding of the trade,” a New York-based market source said.

A second source said the new issue premium for the new Pemex notes would likely to be pretty tight if last week’s Petroleo Brasileiro SA deal was any indication. The Petrobras notes came 2 basis points inside fair value, the source said.

Also in the Latin America region on Thursday, Brazil’s Banco Safra SA priced $500 million of dollar five-year notes to yield 4 3/8%, which was below initial talk for a yield around the mid-4% area.

JBS was also in the market on Thursday, with JBS USA Lux SA and JBS USA Finance Inc. pricing $900 million 10-year notes at par to yield 6¾%.

Elsewhere, Nostrum Oil & Gas plc will begin to roadshow a dollar-denominated offering of seven-year notes on Friday, and First Abu Dhabi Bank PJSC selected bookrunners for a planned offering of dollar-denominated five-year Islamic bonds.

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