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Global energy and infrastructure investor EIG has completed an $11.2 billion senior debt refinancing program related to a midstream transaction, according to a July 2 press release.
The proceeds will be used to repay financing raised for EIG’s Pearl Pipelines’ 2021 acquisition of a 49% interest in Aramco Oil Pipelines Co. from Aramco for $25.3 billion.
The program’s completion is expected to further expand participation of global capital providers in the Aramco transaction.
About $8.5 billion, or 65%, of the total invested capital in Aramco Oil Pipelines was funded by institutional investors and lenders from the U.S., China, Japan, Korea and the United Arab Emirates, among others.
The Pearl Pipelines network is essential strategic infrastructure to Saudi Aramco and is critical to the global economy as it transports one out of every eight barrels of oil to the global oil market, according to Pearl Pipelines’ website.
Pearl Pipelines is organized under a holding company, EIG Pearl Holdings, that was formed and is managed by EIG.
EIG Pearl’s pro forma capital structure includes $11.2 billion of senior secured public bonds and private debt facilities, $1.9 billion of common equity invested in June 2021 to partially fund the initial acquisition.
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