The Firm represented Citigroup Global Markets Inc. and J.P. Morgan Securities LLC, as initial purchasers, in connection with the inaugural offering by Investment Energy Resources Limited (“IERL”) of an aggregate principal amount of US$700 million of its 6.25% Senior Secured Notes due 2029 (the “Notes”). Obligations under the Notes are guaranteed by substantially all of the subsidiaries of IERL that own energy generation facilities and secured by the pledge of the common stock of substantially all of such subsidiaries. The Notes were offered and sold in reliance upon Rule 144A and Regulation S under the Securities Act, and will be listed on the Luxembourg Stock Exchange, and admitted to trading on the Euro MTF market of that exchange.
The Firm also represented Banco Latinoamericano de Comercio Exterior, S.A., as administrative agent, and the lenders in connection with IERL’s new US$440 million senior secured term loan facility. Obligations under the term loan facility are guaranteed by the subsidiaries of IERL that guarantee the Notes, and benefit from the same collateral as the Notes.
The net proceeds of the offering of the Notes, together with borrowings under the term loan facility, were used to repay obligations under the existing project finance indebtedness of IERL and certain of its subsidiaries and to pay related fees and expenses. IERL intends to use an amount equivalent to the net proceeds from the offering of the Notes and the borrowings under the term loan facility to finance and/or refinance new or existing projects, assets or activities that are “eligible green projects.”
IERL is the entity through which Corporación Multi Inversiones corporate group, one of the largest conglomerates in Central America and the Caribbean, owns the operating assets of its energy business. IERL and its subsidiaries own the largest and most diversified private renewable energy portfolio in Central America and the Caribbean in terms of installed capacity.
The Simpson Thacher team included Jaime Mercado, Kirsten L. Davis, Teresita Acedo and Luis Pereyra (Capital Markets and Banking and Credit); and Sophie Staples and Nicole Humphrey (Tax).