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Centrus advises NorteGas on €1.3bn refinancing

NorteGas Energía Distribución (“NorteGas”) successfully launched and priced their inaugural €1.3bn dual-tranche bond transaction on 21st September 2017, with a €550m 5 year priced at mid-swaps+68bps and a €750m 10-year priced at mid-swaps+118bps. The transaction was more than four times oversubscribed and is the largest debut bond from a Spanish issuer since 1999. The bonds are expected to be rated BBB- by Standard & Poor’s.

In July this year a consortium of investors comprising, amongst others, institutional investors advised by J.P. Morgan Asset Management, Swiss Life Asset Managers and a GCC sovereign wealth fund completed the purchase of NorteGas from Energias de Portugal, S.A. (“EDP”).

Centrus initially acted as debt and hedging advisor to the consortium on the bank debt used to support the acquisition and in implementing a hedging programme to support the planned long-term refinancing of the business under new ownership. Centrus was then retained to advise on the bond refinancing and associated unwinding of hedging positions.

NorteGas is the second largest gas distribution company in Spain, comprising over 1 million supply points of natural gas and liquefied propane gas, located in the regions of the Basque Country, Cantabria and Asturias.