Pemex Seeks Retail for $3.25bn Loan

Mexico’s Pemex will be holding New York meetings today with banks, looking for retail participation in a $3.25bn dual tranche syndicated loan, following on from meetings in Mexico Tuesday. The Mexican oil producer is looking for a $1.25bn 3-year revolver, to re-finance a loan maturing this month, for which it is offering a spread of 125bp over Libor. Bookrunners on the deal are Barclays, BBVA, Credit Agricole and RBS, with Credit Agricole as the administrative agent. It is also looking for a new money 5-year term loan for $2bn at L+150bp, for which BBVA, BNP Paribas, Credit Agricole, Citi, HSBC and Inbursa are bookrunners, with BBVA as admin agent. The revolver is to refinance a loan taken in 2007 for $1.25bn that was priced at Libor plus 20bp. Initial comments from some retail banks were that pricing was too tight, given current cost of funding for banks. One banker says the spreads should be double what is being offered in order to make pricing attractive for retail. “The spread on the 5-year is what current costs of funding are for 3 years, so it does not seem attractive from a retail point of view,” adds one.