Latham & Watkins and the law firm of Salman M. Al-Sudairi advise on the inaugural two-tranche bond offering from EIG Pearl Holding

Latham & Watkins and the law firm of Salman M. Al-Sudairi advised EIG Pearl Holdings S.à rl (“EIG Pearl”) on its inaugural two-tranche bond offering, comprising $1.25 billion in 3.545% Senior Secured Bonds due 2036 and $1.25 billion 4.387% Senior Secured Bonds due 2046. The bonds are rated A (stable) by Fitch and A1 (stable) by Moody’s.

EIG Pearl Holdings S.à rl owns a 49% stake in Aramco Oil Pipelines Company which leases from Saudi Aramco a network of pipelines containing all current and future pipelines used to transport stabilized crude oil within the Kingdom of ‘Saudi Arabia. An aggregator vehicle managed by EIG owns approximately 89% of EIG Pearl, while the remaining 11% is held by a wholly owned subsidiary of Mubadala Investment Company PJSC. The bonds monetize Aramco Oil Pipelines Company’s projected equity distributions to be generated from the minimum contractual rate payments owed by Saudi Aramco for the right to use and operate the pipelines leased to Aramco Oil Pipeline Company.

The issuer intends to use the proceeds to repay debt incurred in connection with its acquisition of its interest in Aramco Oil Pipelines Company.

Citi and JP Morgan were the global coordinators. BNP Paribas, First Abu Dhabi Bank, HSBC, Mizuho, ​​MUFG and SMBC Nikko acted as Joint Bookrunners.

The Latham team was led from London by financial partners Conrad Andersen, Steve Curtis and James Burnett, with partners Misa Schmiederova, Hamaad Mustafa and Alyssa Wu. Salman M. Al-Sudairi’s law firm advised on the Saudi law issues, with a team led by lawyer Amar Meher with associates Homam Khoshaim, Wassim El Mardini and Mashal Al-Assaf. Advice was also provided on hedging matters by London partner Dean Naumowicz with London partner Delyth Hughes, and on corporate matters by London partner John Guccione.

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