Enap Continues Refinancing with US$250mn Deal

Chile's state oil company Enap signed Tuesday a US$250mn loan agreement with 15 international banks to restructure a loan originally signed in August 2003, the company said in a statement.

Calyon New York Branch, HSBC Securities (USA), and JP Morgan Securities led the arrangement. Tuesday's "amended and restated term loan agreement" lowers the interest rate of US$150mn of the loan to Libor plus 0.20% a year from Libor plus 0.50% a year.

Enap will use the funds from this loan to refinance short-term debt. The agreement also grants an extra US$100mn as a bullet loan repayable after five years, at an interest rate of Libor plus 0.20% for the first four years and Libor plus 0.225% for the final year.

Markets offered financing for US$360mn. Enap started its refinancing efforts in October 2002, when its average term of debt was two years. Today, average debt terms are six years.

About Business News Americas: Business News Americas is a multilingual news and business information service that covers the most important original stories in 11 different business sectors throughout Latin America everyday. Visit BNamericas to access our real-time news reports, 7-year archive, Fact File company database, and latest research reports.

Click here for a Free two week trial to our Latin America Oil & Gas information service.