Carmelo de las Morenas, Corporate Director Finance:
"Repsol and Goldman Sachs have been working together since the IPO of our company
in 1989. We have accomplished a number of successful transactions togetherand have
achieved significant milestones. Goldman Sachs was the major financial institution in all
five global equity offerings we made to complete the privatization of Repsol, and lead
managed our first preferred stock issuethe largest corporate issuance ever in Spain.
The firm has also assisted us in hedging our oil exposures. Our acquisition of YPF and the
financings related to it have been the most important transactions we have undertaken
since the privatization, and Goldman Sachs was centrally involved. This acquisition
represented a critical part of our strategy to strengthen Repsols oil reserves and
presence in Latin America. We took the unusual stepat least in the oil
businessof making a cash offer to the government of Argentina for YPF. This
presented us with substantial immediate financing needs that could be met only through a
credit facility. The willingness of Goldman Sachs to play a leading role in this facility,
committing a very large sum of its own capital so that we could proceed with the
transaction, speaks to the trust in our relationship. We then quickly refinanced the loan
in the debt capital markets and subsequently, and most importantly, we refinanced a
substantial part of the debt in the equity markets, thereby restoring our gearing ratios
to a more appropriate level."
- Goldman Sachs acted as financial advisor to Repsol in its two-step $16 billion
acquisition of YPF.
- To date, this transaction represents the largest cash transaction in the energy
industry, the largest cross-border acquisition by a Spanish company and the largest
acquisition in Latin America.