Comision Federal de Electricidad closes $225 million syndicated loan led by J.P. Morgan.NEW YORK--(BUSINESS WIRE)--Dec. 13, 1995--Comision Federal de Electricidad (CFE CFE Conventional Forces in Europe (treaty) CFE Cash Flow to Equity (finance/accounting) CFE Comisión Federal de Electricidad (México) CFE Certified Fraud Examiner ), the electricity generation, transmission, and distribution company of the United Mexican States, has completed a $225 million 364-day syndicated loan Syndicated Loan A very large loan in which a group of banks work together to provide funds for one borrower. There is usually one lead bank that takes a small percentage of the loan and syndicates the rest to other banks. Notes: Also known as a "syndicated bank facility. facility with a group of 12 international banks. This facility supports general corporate purposes, including the funding of CFE's continuing capital expenditure program to modernize mod·ern·ize v. mo·dern·ized, mo·dern·iz·ing, mo·dern·iz·es v.tr. To make modern in appearance, style, or character; update. v.intr. To accept or adopt modern ways, ideas, or style. and expand Mexico's power generation sector. J.P. Morgan acted as sole agent and arranger for the loan. "The success of this deal is noteworthy because it is CFE's first syndicated loan in 13 years and because of the diverse group of international banks that joined the syndicate from Europe as well as from North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and Asia," said Dr. Rogelio Gasca Neri, CFE's Director General. "The favorable and swift response to this deal, which was oversubscribed Refers to connecting more users to a system than can be fully supported if all of them were using it at the same time. Networks and servers are almost always designed with some amount of oversubscription, counting on the fact that everybody does not need the service simultaneously. , is an indication of Mexico's rapidly improving access to international capital markets," said Mary Watkins, head of J.P. Morgan's loan syndications Loan Syndication The process of involving numerous different lenders in providing various portions of a loan. Notes: Mainly used in extremely large loan situations, syndication allows any one lender to provide a large loan while maintaining a more prudent and manageable group. "Moreover, it indicates that syndicated loans could represent a larger share of CFE's overall financing program, in addition to bilateral bank agreements and bond issues." CFE was established by presidential decree in 1937 and is a decentralized de·cen·tral·ize v. de·cen·tral·ized, de·cen·tral·iz·ing, de·cen·tral·iz·es v.tr. 1. To distribute the administrative functions or powers of (a central authority) among several local authorities. public agency wholly-owned by the Federal Government of Mexico. It is responsible for the overall planning, development, and operation of Mexico's national electricity system, including the generation, transmission, and sale of electricity to all of Mexico and its population of approximately 81.2 million people, with certain exceptions. As of December 31, 1994, CFE had total equity of $26.5 billion and total assets of $34.1 billion, making it the second largest corporation in Mexico after Petroleos Mexicanos (Pemex). J.P. Morgan is a global banking firm that serves clients with complex financial needs through an integrated range of advisory, financing, trading, investment, and related capabilities. CONTACT: Press Contact: Margaret Southerland, 212/648-7955 |
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