Enap Presses on with Loan

Chilean oil and gas producer Enap is expected to provide indication in the coming week about which banks it will shortlist for a planned $300m plus 3-year loan facility and bridge, presumably 1-year, also in the $300m size area, say bankers eyeing the mandate. Proceeds are for nearby refinancing, and the shorter facility will be taken out with a bond ahead of maturity, according to the company. Price estimates on the 3-year are around Libor plus 275bp, give or take 25bp, say bankers. Institutions heard pitching include BBVA, Santander, HSBC, BNP, RBS and Calyon. Enap’s higher-rated cousin Codelco was also entertaining bids from banks, but demand to lend to the copper miner was apparently so strong that it has allowed the borrower to sidestep syndication in favor of bilaterals. Pricing suggestions apparently fell to the 200bp over Libor area on an all-in basis, which led a number of lenders to desist from pitching. “The Japanese banks may still be interested in lending at those levels,” says a banker at a European shop. Codelco was heard eyeing funds to help address a $400m maturity this year, though it apparently has cash on hand.