Milbank instructed on $353 million financing for US-Mexico natural gas pipeline
Milbank, Tweed, Hadley & McCloy advised Mitsubishi UFJ and Santander as lead arrangers, and lenders Sumitomo Mitsui, Caixa, and Société Générale in the financing for a natural gas pipeline project connecting sites in southern Texas and Monterrey, Mexico.
The Nueva Era Pipeline will run approximately 200 miles from a hub in Webb County, which borders the Rio Grande River, into the northern Mexican state of Nuevo León. The complex cross-border nature of the project involves both US and Mexican collateral security packages and regulatory regimes.
Comision Federal de Electricidad (CFE), Mexico’s state-owned electric utility is the anchor shipper on the line, which will also offer natural gas transportation services to private shippers on an open access basis. Nueva Era is one of the first CFE pipelines to include portions in both Mexico and the US.
Partners Daniel Michalchuk and Dan Bartfeld led the Milbank team acting for the banks.
