CFE to Launch $2bn Syndication

Mexico’s CFE is launching syndication of a $2bn 3.5-year term loan at meetings Thursday in New York and November 8 in Mexico City, say bankers. The loan will pre-fund a $1.7bn revolver maturing in May 2011. BAML, BBVA, BNP Paribas, Bank of Tokyo, Citi, Intesa, RBS and Santander are bookrunners on the deal for Mexico’s federal electricity commission. Pricing is heard at 130bp over Libor, according to bankers away from the deal. Pemex recently priced a 3-year tranche on a $3.25bn loan at Libor plus 125bp and a slight pickup had been expected for the extra duration. Terms and fees are still being discussed, so final deadlines for commitments and signing have not been set, say bankers. However, a banker on the deal says CFE must close the transaction before December 9, as this is when the rate on the outstanding facility re-sets. Commitments would be expected a couple of weeks before then, in time for signing by that date.