The Firm represented Cap Cana, S.A. in its Exchange Offer and Consent Solicitation related to its outstanding 9.625% Senior Secured Notes due 2013. In the exchange offer, Cap Cana issued $129,990,800 principal amount of 10% Senior Secured Notes due 2016 (including capitalization of accrued interest on the old notes) and $126,567,000 aggregate principal amount of its 10% Senior Secured Recovery Notes due 2016. Approximately 96% of Cap Cana’s old notes participated in the exchange offer and approved amendments to the indenture for the old notes modifying or eliminating covenants, among other things. The transaction substantially reduces interest payments in the short term and extends maturities by two years.
Together with the restructuring of a $100,000,000 term loan arranged by Deutsche Bank and Morgan Stanley in December 2008, the consummation of the Exchange Offer represents a restructuring of substantially all of Cap Cana's financial debt.
Cap Cana is among the largest real estate companies in Latin America and the Caribbean and one of the largest companies in the Dominican Republic. Its principal holding is Cap Cana, a 30,000 acre luxury, second-home real estate project under development which is located on the eastern coast of the Dominican Republic.
The Simpson Thacher team for the transaction included, among others, Jaime Mercado, Kirsten Davis, Patrick Baron, Ben Wolf, Alex Delacruz and Rodrigo Fernandez (Corporate); Jonathan Cantor and Rian Balfour (Tax) and Jeanne Annarumma (Executive Compensation and Employee Benefits). Paralegal Manuel Fermin also provided invaluable support.