TGI to seek $350m loan for acquisitions: Fitch

Transportadora de Gas Internacional is likely to seek a $350m syndicated loan with a 5-year tenor and a 3-year grace period to help fund acquisitions announced last week, according to a Fitch ratings report. TGI’s subsidiary Empresa de Energia de Bogota said Thursday it had agreed to buy 23.61% of Transportadora de Gas del Peru, as well as all of that firm’s infrastructure operator, Compania Operadora de Gas del Amazonas. The buyer expects the acquisition to cost around $650m; Fitch put the deal at $642m. The ratings agency said TGI would fund the purchase with $292m of cash on hand, and borrow the remainder through a syndicated loan. Cash generation and dividends from TGP would allow TGI to pay down around $125m in 2014 and 2015, Fitch said. The agency kept TGI’s rating at BBB- after the announcement, saying the deal has strategic merits although it will push up leverage temporarily. TGI is a Colombia firm majority owned by Grupo Energia de Bogota. TGI, rated Baa3/BBB-/BBB-, was last in the debt market in March 2012, when it sold a 5.7% $750m 10-year NC5 bond. Techint subsidiary Tecpetrol International is selling the TGP stake. TGI will hold a conference call on Tuesday morning to discuss the acquisition.