Pemex to close $ 5.5 bn syndicated loan

Mexico's state oil company Pemex plans to close in February a $ 5.5 bn loan consisting of a $ 4.25 bn long-term loan and a revolving credit line of $ 1.25 bn, Pemex said.
The $ 4.25 bn loan, obtained through the Pemex project funding master trust, will be used to refinance a syndicated bank loan signed on March 22 2005. Pemex established the Delaware-based trust with Pemex as the sole beneficiary.

The loan will be divided in two tranches: a $ 1.5 bn five-year tranche at Libor rate plus 40 base points and a $ 2.75 bn seven-year tranche at Libor plus 55 base points. The revolving credit line can be used by Pemex project funding master trust or Pemex itself depending on their needs.
The three-year credit line will pay interest at Libor plus 27.5 base points. The syndicated loan is being led by BBVA, Calyon, Citigroup, HSBC, Santander and Scotia Capital.

To date the banks that have confirmed their participation are: ABN Amro, Bank of America, Bank of Tokyo-Mitsubishi UFJ, Barclays, Bayerische Landesbank, BNP Paribas, Caja Madrid, Mizuho, San Paolo IMI and Societe Generale. Other banks are expected to join the operation.
Pemex also plans to issue $ 1.5 bn debt on the international market through the Pemex Project Funding Master Trust, a source close to the operation told.

Credit Suisse, Lehman Brothers and UBS Investment Bank are leading the financial operation, which will be officially announced in coming days, the source said. Money raised from the issue will be for long-term infrastructure projects.
Pemex's debt increased to more than $ 25 bn in 2005 from around $ 2.5 bn in 2001, according to credit ratings agency Fitch.