FOR IMMEDIATE RELEASE
Floating-rate notes and fixed-rate notes backed by US Ex-Im Bank; proceeds finance Pemex purchases from US suppliers for use in oil and gas exploration in key production areas
NEW YORK, October 22, 2014 – Milbank, Tweed, Hadley & McCloy LLP represented international banks acting as initial purchasers in offerings of two series of notes issued by Mexico’s state-owned oil company, Petróleos Mexicanos (Pemex) guaranteed by the US Export-Import Bank.
The bank group for each offering of notes consisted of BNP Paribas, Citigroup and Santander. A series of $500 million floating-rate notes due 2025 was priced with an interest rate of three-month LIBOR plus 35 basis points. A second series of $500 million fixed-rate notes due 2025 was priced with an interest rate of 2.378% per annum.
Pemex is using the proceeds from the sale of the notes primarily to finance its purchase of eligible goods and services from US manufacturers and suppliers for use at on-shore and off-shore oil and gas exploration and production areas of Pemex-Exploración y Producción.
Helfried Schwarz, a New York-based partner in Milbank’s Transportation and Space Finance practice group, led the deal team along with New York-based Securities partner Arnold Peinado and special counsel Kevin MacLeod. Other assisting attorneys included Securities associates Richard Mo, Nk Udogwu and Elizabeth McNichol, along with Tax partner Andrew Walker and associate Erika Hauser.
“These are the seventh and eighth offerings by Pemex using the Ex-Im Bank guaranteed notes structure and we’re pleased to have represented the underwriters on all of them,” Mr. Schwarz said. He noted the Firm previously advised on three offerings in 2012 with total proceeds of $1.2 billion and three offerings in 2013 with total proceeds of $1.5 billion.
“Investors are showing keen interest in Mexico’s energy sector as the country continues to relax restrictions on foreign participation in resource development,” Mr. Schwarz added. “As a result of these transactions, Pemex is able to substantially increase its own commerce with a wide range of US-based suppliers for advancing production of oil and gas assets.”
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