 Bankers are preparing for adire second quarter in Latin America as MA deals and shareofferings grind to a halt with the drastic drop in economicactivity during the COVID-19 pandemic. Deal volume fell 41 in Latin America in the first quartercompared with a year earlier, to 9.3 billion. In Brazil, whichbegan ordering residents to stay at home only by the end ofMarch, deal volume was up 17 in the first quarter, to 6.7billion. So far, no announced large deal in the region has beencanceled. The largest in the quarter, the 825 millionacquisition of Takeda Pharmaceutical operations in theregion by Brazilian pharmaceutical company Hypera hasreceived financing this week and is expected to close. The Boeing-Embraer deal is also expectedto go through after regulatory approval, according to bankersworking on it. But bankers say deal announcements are not expected duringthe pandemic, as parties prefer to set the terms, includingprice and payment schedule, once there is a clearer perspectiveof when economic activity can resume. We are still working on deals, but new announcements willdepend on a clearer perspective of when the world can expect tocontrol the pandemic, said Alessandro Farkuh, investmentbanking head at Bradesco BBI. Amid the turmoil, setting prices for assets has been achallenge for bankers. There will likely be a valuation revision for ongoingdeals. We know that the equities market is not a good proxy now,but how to calculate future cash flows?, said Daniel Damiani, apartner at Sao Paulo-based MA boutique JK Capital. When a time frame for resuming economic activity becomesclearer, deal flow may resume, bankers said. Many private equity firms have a lot of cash. So there maybe good deal opportunities for them, as prices are lower and theexchange rate is favorable, said Hans Lin, head of Brazilinvestment banking at Bank of America. Companies more affected by the pandemic may be forced tolook for a deal, bankers said. Still, companies will face challenges getting bank loans orother forms of debt to finance transactions. That could makeshare swaps the favored form of currency in any near-termacquisitions, said a senior banker at one of Brazils biggestlenders, who requested anonymity to discuss some of his clientsdeals. The pandemic of COVID-19 - the potentially lethalrespiratory disease caused by the new coronavirus - and theensuing retreat from risk has also dampened foreign investorsappetite for Brazilian assets, considering challenges to growthand sharp exchange rate fluctuations, this banker added. DEBT RESTRUCTURING Debt restructuring, an area some banks tend to shiftresources to in tough times, may not pick up immediately, aslocal banks have been ordered to loosen terms on credit linesand agree to grace periods. Eventual candidates for debt overhauls include industriessuch as tourism, oil and gas and all parts of the auto supplychain, restructuring specialists said. Less clear is the fate of airlines, under severe pressurebut set to get a helping hand from Brazilian state developmentbank BNDES. Within Brazils vast agribusiness sector, sugar and ethanolproducers are particularly vulnerable to the rout in fuel pricescaused by an oil price war between Saudi Arabia and Russia. The ethanol industry was already under pressure with a lotof bankruptcies, and now ethanol prices do not cover the costsany more, said Salvatore Milanese, founder of restructuringfirm Pantalica Partners. A bill going through Congress may allow all companies underbankruptcy protection to renegotiate existing debt restructuringagreements already approved by creditors, considering newrevenue levels due to the COVID-19 pandemic. The bill also easesthe conversion of debt into equity. Below are the tables for MA advisory in Brazil and LatinAmerica Brazil MA League table Financial advisor Deal value Number of million deals Bradesco 1,072 6 Bank of America 825 1 Itau Unibanco 774 8 JPMorgan 648 1 Morgan Stanley 519 2 BNP Paribas 517 1 Rotschild Co 496 4 Banco Safra 272 2 Santander 212 1 Prisma Capital 140 1 Total 6,751 112 Latam MA Advisory League table Financial Deal value Number of adviser million deals Bank of America 1,135 2 Bradesco 1,072 6 Itau Unibanco 1,011 12 JPMorgan 648 1 Morgan Stanley 519 2 BNP Paribas 517 1 Rothschild Co 496 4 UBS 350 1 Santander 333 5 Citi 310 2 Total 9,241 204 Reporting by Tatiana Bautzer and Carolina Mandl; Editing byChristian Plumb and Jonathan Oatis 