Simpson Thacher represented Jefferies LLC and Credit Agricole (USA) Inc. as initial purchasers in connection with the offering by Stoneway Capital Corporation of US$165 million aggregate principal amount of its 10% Senior Secured Notes due 2027 (the “additional notes”). The offering was a reopening of Stoneway’s existing US$500 million aggregate principal amount of 10% Senior Secured Notes due 2027 (the “existing notes”) which were issued in February 2017, in what was believed to be the first project bond related to Argentine assets in over 20 years. Stoneway, a Canadian corporation, is constructing four power generation projects to supply electricity to the wholesale electricity markets in Argentina through its Argentine subsidiaries, using the net proceeds from the offering of the existing notes. The offering of the additional notes was conducted pursuant to Rule 144A and Regulation S.
The net proceeds from the sale of the additional notes will be used to finance the conversion of Stoneway’s 103.5 MW simple-cycle gas and diesel-fuel combustion turbine generation plant currently under construction in San Pedro, Argentina into a combined-cycle power generation project through the development, construction, operation and maintenance of a new steam turbine power plant adjacent to the existing plant. The additional plant will supply increased capacity to the Argentine market pursuant to an additional power purchase agreement for 105 MW of electricity generation capacity for a 15-year period. Construction of the additional plant will be provided through a turn-key contract with a consortium led by affiliates of Siemens AG.
Simpson Thacher also represented Jefferies LLC as solicitation agent in connection with a consent solicitation by Stoneway of holders of the existing notes to issue the additional notes and to amend the related financing documents to permit Stoneway to develop, construct, operate and maintain the additional plant.
The Simpson Thacher team included S. Todd Crider, Kirsten L. Davis, Joshua Bernard, Ashleigh Taylor, Francisco Molina, Thais Gasparian and Mariano Pero (Capital Markets); Amy Beller (Energy and Infrastructure); and Jodi Schneider (Tax); with additional support from Janet Nadile and Jonathan Pall (Credit/Collateral).