By: Steven Ongenaet
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Advising CitiBanamex on the financing of a project for the upgrade and expansion of port logistics facilities
Nader, Hayaux & Goebel advised Citgroup Global Markets, Inc., as lead arranger and bookrunner, Citibanamex, as administrative and collateral agent, Citibank, N.A.,, as intercreditor agent and the Institutional Acredited Investors, in a project financing consisting of (i) a term loan in the amount of US$65MM; (ii) a private placement of notes in the amount of US$125MM; and (iii) letters of credit in the amount of US$157MM, for the upgrade and expansion of port logistics and fuel transportation facilities at the Lázaro Cárdenas Port.
Greenfield SPV I, S.A.P.I. de C.V., a special purpose vehicle managed by BlackRock México Infraestructura II, S. de R.L. de C.V. (“BlackRock”), entered into a 14-year Coal Transportation & Storage Services Agreement with Comision Federal de Electricidad (“CFE”) to build, own and operate a coal transport and storage system (“LCPL”) located in Michoacán and Guerrero, Mexico.
LCPL, when complete in 2019, will receive, store and transport 1.3MM tons of coal p.a. for CFE’s Plutarco Elias Calles power station (“Petacalco”) located 4 miles south of the Lazaro Cardenas Port
At 2,778 MW of installed capacity across 7 coal-fired units, Petacalco is Mexico’s largest power generation complex and accounted for 4% of Mexico’s installed capacity and 10% of Mexico’s power load in 2015. Unit 1 was placed in service in 1993
Since the completion of Unit 7 in 2011, Petacalco has been operating at 70% because the existing facilities are incapable of accommodating Petacalco’s required increase in coal transport and storage capacity. LCPL will enable Petacalco to operate at its full 2,778 MW capacity and provide additional coal storage and transport redundancy. As such, LCPL is of great strategic importance to CFE.