BRIEF-Petrofac, First Reserve signs $1.25 bln energy infrastructure deal

June 26 Thu Jun 26, 2014 6:33am EDT

June 26 (Reuters) - Petrofac Ltd :

* $1.25 bln energy infrastructure agreement signed

* Under first transaction first reserve intends to buy 80 pct of Petrofac's deployed and contracted floating production facilities for a total initial consideration of approximately $450 million

* Agreement reinforces positioning of ies as an enabler for petrofac group

* New venture is anticipated to be funded 80 pct by First Reserve and its investors, with petrofac retaining balance of ownership

* Up to $1 billion is expected to be committed by First Reserve Energy Infrastructure Funds and its investors

* Expects to contribute up to a maximum of $250 million in form of existing assets and cash

* Total initial consideration is expected to be approximately $450 million, which comprises cash and assumption by joint venture of around $130 million of existing project finance

* Gross investment capacity of new venture is expected to be significantly increased through debt leverage available to infrastructure investments

* Proceeds will be used for general corporate purposes

* Will report 100 pct of earnings from floating production facilities up to closing date and 20 pct of earnings of petrofac fpso holding limited thereafter

* Transaction is expected to close by end of Q3 of 2014 Further company coverage: Link to press release: (bit.ly/1nGR0d4)