Grupo R Unveils Platform Financing

Mexico’s privately held Grupo R is set to secure a $600m 7.5-year syndicated loan to help finance the construction of La Muralla III, Mexico’s first deepwater drilling platform, say bankers close to the deal. The platform will cost up to $800m and is being financed with 75% debt and 25% equity from the sponsor. Leads WestLB and BBVA have provided Grupo R with a $150m bridge at an undisclosed rate to kick start construction. That will be eventually be fully refinanced with the $600m loan, which carries a single margin of Libor plus 175bp throughout the 2.5-year construction and 5-year post completion periods. Six other banks are heard to have joined the syndication. Post completion, Pemex is the offtaker for the first 3 years of the transaction and could renew the contract for the remaining 2 years, say bankers. Funding will be distributed to the sponsor as it completes construction milestones. La Muralla III represents an important first step for Pemex as it heads into deeper waters to replenish falling reserves. Other similar deals are likely to come in the future from Mexico, say bankers involved in the sector. Elsewhere in LatAm, there is activity on the near-term horizon. A number of platforms have been started for Petrobras, and several more are heard seeking financing in the coming months as the Brazilian company seeks to explore new discoveries.