Canadian Sells Colombian Pipeline Position

Canada’s Talisman Energy has sold its 12% position in Colombian pipeline operator Ocensa to US private equity firm Advent International for $595m, it says, a key part of Advent’s purchase of a 22% stake. Talisman retains transportation rights for the 830km pipeline, which links the Llanos Basin to the Covenas port in Colombia. Advent is working on a $600m loan to help fund the purchase of 22%, which includes portions owned by France’s Total and Spain’s Cepsa in addition to Talisman’s piece, according to people following the process. The 7-year amortizing loan pays Libor+450bp. Citi, Itau and Natixis are leading the transaction, expected to close before the end of the year. The total purchase price of the 22% stake is expected to be more than $1bn.