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Latham & Watkins Advises on Inaugural Bond Financing for Sempra Infrastructure Partners

January 12, 2022
Firm represented the initial purchasers in offering by a new business platform that combines Sempra’s LNG business with its Mexico business.

Latham & Watkins advised the initial purchasers in the inaugural bond financing by Sempra Infrastructure Partners, a new business platform of Sempra Energy that develops, builds, operates, and invests in energy infrastructure in North America and globally. The Sempra Infrastructure platform combines Sempra’s LNG business, which develops, owns, and operates LNG export infrastructure in the United States and Mexico, with Sempra’s Mexico business, a leading developer and operator of natural gas, renewable energy, LPG, and refined products infrastructure in Mexico.

Sempra Infrastructure was created to simplify the ownership of Sempra’s North American non-utility energy infrastructure assets under a common platform, increase scale, raise capital efficiently, realize portfolio synergies, and highlight the value of the assets. Controlled by Sempra, Sempra Infrastructure sold a 20% non-controlling interest to an affiliate of KKR in 2021 and expects to sell a 10% non-controlling interest to an affiliate of the Abu Dhabi Investment Authority, subject to closing conditions.

The ten-year notes achieved a coupon of 3.25% and received investment grade ratings from Standard & Poor’s, Moody’s, and Fitch. Sempra Infrastructure intends to use the proceeds from the offering for general corporate purposes.

Latham assembled an interdisciplinary team to advise the initial purchasers in the offering, including members of its Capital Markets Practice, Latin America Practice, and Energy & Infrastructure Industry Group, led by partners Roderick Branch and Sony Ben-Moshe, with counsel Manasi Bhattacharyya and associates Sean Stanton, Andrew Rutsky, Francisco Lascurain, Cyerra McGowan, and Chelsea Carlson. Tax partner Diana Doyle advised on tax matters.