CFE in Two $100 Million Credit Facilities

Cleary Gottlieb represented longtime client Comisión Federal de Electricidad (CFE), the Mexican state-owned electric company, in two $100 million credit facilities.

The facilities closed and were funded on December 31, 2021.

The borrowers under the credit facilities were two special purposes trusts sponsored by CFE who intend to use the proceeds to invest in energy projects in Mexico. CFE acted as co-obligor and each productive subsidiary enterprise of CFE will guarantee CFE’s obligations as co-obligor under the facilities.

The first facility consisted of a $100 million single-draw, SOFR term loan by J.P. Morgan. The facility will mature on December 31, 2022.

The second facility consisted of a $100 million single-draw, base rate term bridge loan by Bank of America. The facility will mature on February 22, 2022.

CFE is a decentralized public entity of the Mexican federal government that generates and distributes electricity throughout Mexico. CFE generates over 90% of the electricity consumed in Mexico and, under Mexican law, CFE has the exclusive right to transmit and distribute electricity in Mexico.