Haynes and Boone Advises Grupo Fermaca on a $750 Million Mexican Natural Gas Infrastructure Transaction


NEW YORK CITY and MEXICO CITY – A cross-border team from the New York and Mexico City offices of Haynes and Boone, LLP advised longstanding client, Grupo Fermaca S.A. de C.V., a market leader in the development and operation of energy infrastructure in Mexico, in connection with the acquisition by Partners Group, a global private equity firm headquartered in Zug, Switzerland, of a majority stake in Fermaca from New York private equity firm, Ospraie.

The transaction was valued at $750 million and funded through a combination of mezzanine debt and equity.

Following the recently announced energy reforms and liberalization of foreign ownership of energy assets in Mexico, the transaction represents a major advancement in Mexican infrastructure projects. Fermaca operates two major natural gas pipelines, the 237-mile long Tarahumara Pipeline which, through an interconnection at the U.S.-Mexican border, supplies natural gas from the United States to the Mexican state of Chihuahua and the Palmillas pipeline in the Mexican state of Toluca, which is operated by Tejas Gas de Toluca, a natural gas transportation company. Fermaca is also developing compression, cogeneration and liquefied natural gas projects.

Haynes and Boone’s cross-border team of corporate and finance attorneys guided Fermaca management through the structuring of this new relationship with Partners Group. The transaction was co-led by firm Partners Antonio Franck (Mexico City) and George H. Wang (New York), and in-house counsel Laura Trejo Chaparro. Additional members of the Haynes and Boone team included New York Associate Christopher Perez and Mexico City Senior Attorney Cesar Ramirez-Del Angel.

The transaction follows the representation by Haynes and Boone of Fermaca’s subsidiary, Tarahumara Pipeline, S.de R.L. de C.V, in its successful public auction bid to build and operate the US $440 million, 380-kilometer Chihuahua pipeline. The Chihuahua project was awarded Project Finance Deal of the Year for 2012 by Project Finance Magazine.

In addition, Haynes and Boone recently represented Afore XXI Banorte in the $1.6 billion acquisition of Afore Bancomer from Spain’s Banco Bilbao Vizcaya Argentaria, which was also co-led by a New York and Mexico City team led by Partners Wang and Jorge Labastida. In January 2014, the Afore XXI transaction was awarded “2013 Domestic M&A Deal of the Year” by LatinFinance.

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