Petróleos Mexicanos SA de CV has worked with banks to help refinance at least $5 billion of its long-term debt, according to a source familiar with the matter cited in a Sept. 10 Bloomberg report.
Some of the banks leading the transaction are JP Morgan Chase & Co., Goldman Sachs Group Inc. and Bank of America Corp., two sources told Bloomberg. The refinancing is aimed at helping sustain the state-owned operator as it tries to increase its oil production and cash flows, the report said.
Pemex may also get short-term loans or cash infusions from the Mexican government, one source told Bloomberg.
The company already has gotten significant aid from the Mexican government this year, totaling roughly $4.5 billion, which includes a cash infusion of $1.3 billion, $1.5 billion in tax relief and a pension notes payout of $1.8 billion, the report said. In 2020, Pemex is expected to get another $4.4 billion, also including tax breaks, Bloomberg reported.
Pemex, which Bloomberg reported has an outstanding near-term debt of $14.6 billion, had its long-term foreign- and local-currency issuer default ratings downgraded to BB+ from BBB- by Fitch in June. The company in July reported a 13.6% decrease in total sales and a 6.8% drop in its oil total production.
