Pemex Launches $3.25bn Loan Refi

Pemex launched a refinancing of its $3.25bn dual-tranche loan Tuesday, with the aim of reducing margins by another 50bp.The Mexican state-owned oil company closed the original transaction in December, but had a change of heart after seeing telecom America Movil lock in just 50bp over Libor on a $2bn 3.5-year loan in April. After paying Libor+125bp on its $1.25bn 3-year revolver and plus 150bp on a $2bn 5-year term loan, Pemex was heard to be less than satisfied with the spreads it had achieved just four months earlier. According to a banker who received the invitation, the company intends to reduce the margin on the revolver to Libor+75bp, while also cutting the term loan to Libor+100bp. Commitments fees will also fall to 25bp from 45bp. Banks will be paid a 25bp amendment for rolling over existing debt, and 35bp for any new money. Commitments are due August 3 with the closing scheduled for August 5. A conference call is scheduled for Thursday. Some bankers are wondering how much interest will be generated, particularly some European banks with potential problems brewing back at home as well as investment banks that may have already sold most if not all of their holdings. .”Pemex could probably get cheaper funding in Mexico, so to the extent that banks want to match [their offer] they have access to other forms of funding,” says one banker. Participants on the original deal were Deutsche, Goldman Sachs, Intesa Sanpaolo, Credit Suisse, Societe Generale, Bayern LB, JP Morgan, SMBC, Bank of Tokyo-Mitsubishi, Mizuho, Morgan Stanley, Banco Santander, Natixis, EDC, DZ Bank, Bank of New York, and Scotia. Sumitomo came with a $250m ticket across both tranches, while Intesa took $150m in the 5-year loan and EDC received $75m in the 3-year, according to participants. Bookrunners on the 3-year were Barclays, BBVA, Credit Agricole and RBS. BBVA, BNP Paribas, Credit Agricole, Citi, HSBC and Inbursa were bookrunners on the 5-year. This time, BBVA Citi and Credit Agricole and HSBC