KKR launches loan to buy Pemex assets
By Paul Kilby
NEW YORK, Feb 18 (IFR) - Bankers launched a US$1.35bn loan this week to finance KKR's purchase of Pemex assets at spreads marking a sharp contrast to what the Mexican oil company paid a little over a year ago.
The funding package, which largely comprises term loans, is offering a US$280m five-year tranche at Libor plus 200bp, a US$745m 10-year at plus 250bp and a US$225m 12-year at plus 275bp.
There is also a US$100m five-year revolver paying a spread of Libor plus 200bp.
Such levels are a good 100bp wide to the 85bp Pemex paid on a five-year term loan in December 2014, when US crude was around US$60 a barrel - almost double the US$30 price seen on Thursday.
Proceeds from the senior secured loan, which is expected to close by April, will fund the US private equity shop's sale-leaseback agreement to invest in 15 separate infrastructure assets.
The assets are 11 pipelines, one set of subsea cables, 2 non-drilling platforms and one gas compression facility.
The transaction is seen as a way to quickly monetize Pemex's assets and may set a precedent for other private equity firms looking to invest in Mexico following the passage of historic energy reforms in 2014.
BlackRock, First Reserve and Swiss-based private equity firm Partners Group have all announced investments in Mexico's energy sector. Continuación...