Citigroup, sole mandated lead arranger, has launched syndication of five-year term loan facilities for Romanian utilities Distrigaz Nord (US$28mn) and Distrigaz Sud (US$40mn). Both loans have a margin of 170bp for years one to three and 210bp for the fourth and fifth years.
Arrangers at US$10mn receive 80bp, US$7.5mn receive 70bp and US$5mn receive 60bp.
The facility is fully guaranteed by the finance ministry and will be used for general corporate purposes. The deals follow two other recent Romanian deals – US$60mn for Romgaz and US$200mn Termoelectrica.
Romgaz borrowed for three years at Libor plus 175bp and the deal was 100% oversubscribed. Termoelectrica’s loan has a split pricing with 170bp for the first three years and 210bp from years three to five.