Milbank, Tweed, Hadley & McCloy LLP represented BNP Paribas Securities Corp. and Credit Agricole Securities (USA) Inc. as initial purchasers of $750 million in floating rate notes due 2024 issued by Mexico’s state-owned oil company, Petróleos Mexicanos (PEMEX).
The notes are guaranteed by the Export-Import Bank of the United States – the largest amount of notes in a single issue guaranteed by Ex-Im Bank in the bank’s history. The notes were issued on September 30, 2013 and will mature on February 15, 2024.
PEMEX operates both on- and off-shore oil drilling and refining facilities, as well as petrochemical complexes. It is the second-largest company in Latin America by annual sales. Ex-Im Bank is a U.S. government agency established to help finance trade of goods and services between the United States and foreign countries. PEMEX will use proceeds from the sale of the notes to refinance the purchase of certain eligible goods and services for use at on- and off-shore oil and gas exploration and production areas.
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. Other assisting attorneys included Tax partner Andrew Walker, Securities associates Kevin MacLeod, Megha Shah, John Ablan and Tax associate Lysondra Ludwig.
“We’re thrilled to participate in a major financing for one of the leading energy producers in the Americas,” Mr. Schwarz said. “It’s a great opportunity to combine several of Milbank’s strengths: a strong Latin American capital markets practice along with our keen understanding of the Ex-Im bond product.”
Milbank has worked on previous milestone transactions involving PEMEX. In 2012, the firm represented the initial purchasers of three bond issuances by PEMEX with aggregate proceeds of $1.2 billion. Milbank also recently represented the lenders of a $547 million loan for the construction of a deepwater drillship that would be leased by PEMEX.
About Milbank
Milbank, Tweed, Hadley & McCloy LLP is a leading international law firm providing innovative legal solutions to clients throughout the world for more than 140 years. Milbank is headquartered in New York and has offices in Beijing, Frankfurt, Hong Kong, London, Los Angeles, Munich, São Paulo, Singapore, Tokyo and Washington, DC.
Milbank's Latin America Practice Group is one of the most successful and diverse in the region. For the past three years, Milbank has been named the Top Project Finance Law Firm in Latin America by Chambers. The group’s attorneys have advised clients on some of the largest and most innovative transactions across the Americas, including Argentina, Brazil, Chile, Colombia, the Dominican Republic, Mexico and Peru. Attorneys in the group specialize in securities, M&A, project finance, private placements, litigation & arbitration.
