Latham & Watkins Advises on US$2.3 Billion Credit Facilities for TC Energía Mexicana

Latham & Watkins advised the joint global coordinators, lead arrangers, and bookrunners in connection with the US$2.3 billion five-year credit facilities provided to Mexico’s TC Energía Mexicana, S. de R.L. de C.V. (TCEM), a subsidiary of TC Energy Corporation (TC Energy). Listed on the Toronto Stock Exchange and the NYSE, TC Energy is a leader in developing and operating North American energy infrastructure and was the first private-sector company to construct and operate natural gas pipelines in Mexico.

TC Energy recently formalized a strategic alliance with Mexico’s Comisión Federal de Electricidad (CFE), Mexico’s state-owned electric utility and largest power generator, to consolidate the existing Transportadora de Gas Natural de la Huasteca assets, including the Tamazunchale, Tula-Villa de Reyes, and Tuxpan-Tula pipelines, under a single, US dollar-denominated transportation services agreement that extends through 2055. The credit facility financing refinances existing intercompany indebtedness facilitating the objectives of this alliance, through which TC Energy and CFE will develop and construct the TGNH Southeast Gateway Pipeline, a US$4.5 billion offshore natural gas pipeline project that supports the Mexican government’s priorities to supply vital natural gas to the central and southeast regions of Mexico.

The lead arrangers achieved primary syndication of the credit facilities, which are comprised of a US$1.8 billion term loan facility and a US$500 million revolving facility, among a group of banks prior to successful execution and funding.

Latham advised the lead arrangers in the transaction with a deal team led by New York counsel Marcela Ruenes, with advice provided by Washington D.C. partners David Penna and Carlos Ardila.