TGI shopping for banks for acquisition loan

Transportadora de Gas Internacional is still looking for banks for its $350m syndicated loan for an acquisition which is likely to close by early March, according to a person familiar with the firm’s plans. The gas transporter is heard to be looking for a 5-year loan with a 3-year grace period but has not yet mandated banks, LatinFinance understands. TGI’s subsidiary Empresa de Energia de Bogota agreed last week 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. TGI is a Colombian 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.