Pampa Energia eyes next year for bond take-out

lunes 1 de agosto de 2016 15:34 GYT

By Paul Kilby

NEW YORK, Aug 1 (IFR) - Argentine energy company Pampa Energia is aiming to issue bonds early next year once it fully completes its merger with Petrobras Argentina, a company source told IFR on Monday.

The company is expected to take out a US$600m one-year bridge loan in the bond market. The loan is part of a larger funding package to cover the cost of the US$897m purchase of Petrobras Argentina and possibly a cash tender for minority shareholders.

"The bridge loan is maturing in one year, but we would rather go out to the markets once we have the merger formally done - so at the beginning of 2017," the source said.

The acquisition officially closed last week, making Pampa Energia the largest private energy company in Argentina.

Pampa Energia agreed to pay about US$897m for a 67.2% stake in Petrobras Argentina, valuing 100% of the capital stock at US$1.335bn.

The new entity has the potential to generate some US$1.3bn in Ebitda next year - up from around US$450m last year, according to a recent report by Itau BBA.

"The company is well positioned to take advantage of the current situation in Argentina's energy sector, which has not received enough investments over the last 10 years," the bank said.

Acquisition costs were covered from various sources. This included US$161m from the US$241m sale of a stake in Transportadora de Gas del Sur (TGS), a US$140m loan from oil company YPF, an US$85m intercompany loan and a US$178m upfront payment.   Continuación...