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Mexico's SIPyT prices MXN3.5bn 15-yr amortizer at par to yield 8.90%

14:51 28May13

NEW YORK, May 28 (IFR) - Mexico's Servicios Integrados de Pasaje y Turismo (SIPyT) raised MXN3.5bn (USD280m) in the local markets today after pricing a 15-year securitization at par to yield 8.9%. This was the third attempt by the bus company which had earlier tried but failed to get the structure past the finish line.

Backed by future flows related to the business, the structure was seen as a new asset class by many investors who were also unfamiliar with the sector. "It took a lot of investor education," said one banker, who said the paper was largely placed with institutional accounts such as pension funds. Demand was a little over1x.

"The objective for the company is to preserve a certain age for their buses and have structure that will help them support capex so that they can have new buses that are safer, fuel efficient and have more amenities," the banker added.

Under a base case scenario the amortizer will have an average life of 8.4 years. The company is a subsidiary of IAMSA. Leads were Actinver, HSBC, JPMorgan and Finamex, with local brokerage Value coming in as co-leader. The deal has been
rated MxAA- locally.

(Paulj.Kilby@thomsonreuters.com)
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