GS Infra’s Redexis in €950m refinancing

Redexis Gas, the GS Infrastructure Partners portfolio company, has seen its €650m bond issue four times oversubscribed.

Redexis Gas, the Spanish gas distribution and transmission company owned by Goldman Sachs’ GS Infrastructure Partners unit, has successfully issued €650 million of bonds and agreed €300 million of new banking facilities in a €950 million refinancing.

The seven-year bonds were rated Baa3 by Moody’s and BBB by Fitch with a stable outlook. The banking facilities involved five-year undrawn capex and working capital and were signed with a pool of Spanish and international banks.

The bond issue was four times oversubscribed and attracted interest from 240 investors across Europe with the UK accounting for 39 percent of the investor base, Germany 22 percent, Spain 8 percent, and France 7 percent.

BNP Paribas, Credit Agricole and RBS acted as active book-runners on the transaction, while BBVA, ING and Mediobanca were passive book-runners.

Redexis Gas is the second-largest gas transmission business and the fourth-largest gas distribution business in Spain.

In December 2010, GS Infrastructure Partners’ second fund – GSIP II – acquired 80 percent of the business (then known as Endesa Gas T&D) alongside co-investors. Almost three years later, in November 2013, the same investors bought the remaining 20 percent in a deal valued at €130 million. The vendor is both cases was Endesa Group, a unit of Italian utility Enel.

When the 20 percent purchase was announced, it was revealed that GS Infrastructure Partners had invested €141 million in the expansion of Redexis’ network since the original 80 percent acquisition.

Since investment bank Goldman Sachs launched GS Infrastructure Partners in 2006, it has raised over $10 billion for investment in the asset class. It focuses on the transportation and utilities sectors.