Simpson Thacher Represents Citigroup and Deutsche Bank in Project Bond by Fermaca Enterprises
Simpson Thacher recently represented Citigroup and Deutsche Bank and the other initial purchasers in connection with a project bond offering by Fermaca Enterprises, S. de R.L. de C.V. (“Fermaca”) of $550 million aggregate principal amount of 6.375% Senior Secured Notes due 2038 pursuant to Rule 144A and Regulation S. The Firm also represented Citigroup and Deutsche Bank, as lead arrangers, and the other lenders in connection with a $140 million short-term loan incurred in connection with Fermaca’s acquisition by Partners Group, a global private markets investment management firm. The net proceeds from the sale of the notes were used primarily to repay the short-term loan and an outstanding project finance loan.
Fermaca focuses on the development, ownership and operation of mid-stream natural gas infrastructure in Mexico. Fermaca’s assets consist of a 127-kilometer natural gas pipeline in the state of Queretaro in Mexico and a 381-kilometer natural gas pipeline that extends from the United States-Mexico border at San Isidro to a delivery point near Chihuahua City in Mexico.
The Simpson Thacher team included Alan Brenner, Juan Francisco Méndez, Jo Djekovic and Gustavo Silva Cano (Capital Markets/Project Finance); Alan Brenner, Brett Pearlman and Tamaron Greene (Credit); Mike Isby (Environmental); and Jacqueline Barbera (Tax).