Pemex Trading Upsizes Loan Amendment

PMI will upsize a 3-year syndicated loan from $500m to $900m, according to market participants. PMI, the trading arm of Mexico’s state-owned oil company, Pemex, had originally been heard looking to upsize the January 2010 loan up to $700m. Market participants say the company is now looking to increase the size further in response high demand. The deal is expected to close May 26, after originally being expected to close May 6. PMI had extended the deadline for commitments as some banks asked for more time to respond, says a banker with knowledge of the transaction. Pricing is heard to be 125bp over Libor, say bankers with knowledge of the transaction. The original deal priced at Libor plus 225bp. Bank meetings were held in New York in April. Existing lenders were given the option of increasing their tickets and new banks were also invited. Around 30 banks are said to have attended the meeting. BBVA, Calyon, Natixis, RBS and SocGen, which were the leads on the original deal, have returned to lead the amended deal.