Simpson Thacher Represents Jefferies and Seaport Global Securities in Issuance of Project Bond by Stoneway Capital Corporation
02.21.17
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Simpson Thacher represented Jefferies LLC and Seaport Global Securities LLC as initial purchasers in connection with a project bond offering by Stoneway Capital Corporation (“Stoneway”) of US$500 million aggregate principal amount of 10% Senior Secured Notes due 2027 pursuant to Rule 144A and Regulation S. Stoneway, a Canadian corporation and first-time issuer, will construct and operate four power generation projects to supply electricity to the wholesale electricity markets in Argentina through its Argentine subsidiaries Araucaria Energy S.A. and SPI Energy S.A. This offering is believed to be the first project bond related to Argentine assets in over 20 years.
The net proceeds from the sale of the notes, together with equity contributions of US$135 million, will be used to construct four simple-cycle natural gas power plants with a total capacity of over 686 megawatts, in the localities of Matheu, Luján, Las Palmas and San Pedro in the Province of Buenos Aires, Argentina. Construction and operating services for the plants will be provided through turn-key contracts with consortia led by affiliates of Siemens AG, and management services will be provided by SoEnergy International.
The Simpson Thacher team included S. Todd Crider, Kirsten L. Davis, Diego Matamoros, Luiz Rafael de Vargas Maluf and Adriana Perez Cavazos (Capital Markets); Amy Beller (Energy and Infrastructure); and Jodi Schneider (Tax); with additional support from Janet Nadile and Jonathan Pall (Credit/Collateral).