Category: Loans

Banco Espirito Santo and BBVA are leading a 15-year senior loan paying around 450bp over Libor, part of a $375m package for the Eurus wind farm in Oaxaca, says a banker on the deal. The financing includes a $325m IFC A/B loan and a $50m IDB tranche. The size split between the A and B portions has apparently not yet been finalized. DEG, Proparco, Bancomext and Nafinsa are involved, while Banobras and CFE are heard to be participating. The transaction is expected to close next month. Total project costs are estimated by the IFC at $536m for construction of the wind farm and related transmission assets. The IFC had planned to invest up to $55m in senior debt for its own account, and approximately $20m in subordinated debt. The 250MW project is being developed by AE, part of the energy division of Spain’s Acciona, which owns 94%. The off-taker and 6% shareholder is Cemex. Eurus is a special purpose vehicle for the development, construction and operation of the wind farm and associated transmission assets in the La Venta Ejido, Juchitan de Zaragoza municipality.

According to news reports, PDVSA is out with a $1.5bn 3-year amortizing trade-related loan at Libor+450bp. China Development Bank and Banco Espirito Santo are reportedly global coordinators and bookrunners. “The cashflow situation at PDVSA is likely less than fully comfortable given declining oil production and a bloated cost structure,” says Goldman. Bankers on the deal were not available for comment. The facility had been expected following recent comments made by energy minister and PDVSA president Rafael Ramirez that his company was in talks for a $1.5bn syndicated bank loan. Venezuela last month said China has offered $20bn in long-term financing for strategic projects in the country, including oil and gas. Venezuela also agreed to form a joint venture to pump crude oil from a block in the Orinoco Belt.

An April 6 daily brief entitled “AEI Guatemala Plant Wraps Up Loan Syndication” misstates the price of the loan. It is Libor plus 575bp, not 675bp, a banker on the deal clarifies.

TACA is in the market with a $100m 5-year loan syndication through Citi paying 625bp over Libor. The structured deal, which includes guarantees and collateral, is already well oversubscribed, says a banker close to the transaction. The deal may be flexed down in price. It was pulled last year and has not been adjusted in price to reflect tighter prevailing market conditions, says a loans specialist not on the trade.

A February 4 brief entitled “Nextel Peru Dials A/B Loan,” misspells the name of a participating bank. The correct spelling is Banco BIF.

Venezuela’s PDVSA is out with a new $1.5bn 3-year syndicated loan at Libor plus 450bp. BES and China Development Bank are joint bookrunners and global coordinators on the new deal, suggesting other Asian lenders could also become involved, as well as traditional Europe-based lenders. However, unlike previous forays into the dollar bank market, the facility has not been shopped to some of PDVSA’s older relationship banks, to the apparent dismay of executives at some of those lenders. In January 2008, the oil company raised $1bn in 1-year funds at Libor plus 150bp with several regional lenders. Some of those banks say they have not been approached to participate in the new deal. That facility, which was paid down a year ago, was led by BNP, with BANDES, China Development Bank, RBS, Bladex, Banco do Brasil and Citi. Some local Venezuelan lenders also took smaller tickets. An executive involved in the new syndication says invitations went out Friday to a top tier of would-be lead arrangers, some of them Europe-based, and that a first round would likely be closed by early February. A retail syndication will likely follow, he adds.

The World Bank has approved a $1.5bn loan for Mexico to support economic policies in response to the global crisis. The loan is due November 2021 and basis 6-month Libor, including a 0.25% disbursement fee. The project supports economic policies to mitigate the impact of the global crisis and strengthen the medium-term framework for sustainable economic recovery and growth. The focus is fiscal and financial sustainability, labor market efficiency and improved integration in the global economy. Among the stated aims are getting a 10.3% increase in GDP from non-oil tax revenue in 2010, and raising by 35% the number of outlets that provide banking services, including bank branches, and reducing the average tariff for manufactured imports to 5.3%. Separately, the World Bank also signed a $491m loan for influenza virus prevention and control in Mexico. The 18-year deal is also basis 6-month Libor and pays 25bp upfront. Mexico was Monday cut by Fitch to BBB and continues to unnerve investors.

Brazilian ethanol giant Cosan has wrapped up a $300m 3-year pre-export facility with a group of 8 banks. The amortizing deal, originally launched at $250m, pays Libor plus 400bp and has a 2-year average life. The closing breathes life into a syndicated loan market that has been dormant for most of 2009. Cosan, a relatively highly levered name, provides a good test of the lending community’s appetite for corporate risk. A recent company statement shows Q2 net debt to Ebitda of 3.70x, down from 5.70x in Q1, though pro forma including acquisitions that debt would stand at 2.98x, claims Cosan. Still, at least one bank says the credit risk was high enough to warrant avoiding participation. But the company drew a varied group of lenders, the top 6 of which originally signed on to tickets of $50m, with second tier titles going for $30m. Additional participation allowed some lenders to be reduced from original commitments. Calyon led the deal with BES, Standard Bank, Rabobank, SocGen and Fortis as joint bookrunners. Natixis and SMBC joined as arrangers. In June, Cosan said it would look to raise $500m in bonds and $350m in pre-export loans. It ended up raising $350m in 2014 9.625% notes in August and has now clinched a $300m pre-export deal.