Pecom Energia Tides Itself Over
With investors even more skittish, Argentine companies are relying on their relationship banks for financing. Pecom's unsecured note is carrying the company through a rough time in the markets.
In July, when Argentina's government couldn't find anyone to buy its bonds at a rate it could pay, Pecom Energía, the energy arm of holding company Pérez Companc, found bankers willing to lend it $220 million at an all-in cost of 9.3%. Moreover, they didn't require Pecom to secure the four-year floating rate note on its assets. It was the first unsecured oil monetization facility for an Argentine company. "The company has a long history as a premier oil producer and in this environment, it is something that the market considers a real asset," says Patricio Kelly, head of Deutsche Bank in Argentina, which led the deal. Luis Sas, director of finance at Pecom Energía says, "It was a fantastic deal for us both in terms of price and support, the kind you expect from your relationship banks."...
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