ARIFA assists in financing Hotel La Compañía in Panama

ARIFA has advised Hotel La Compañía, a historic hotel in Panama City, on its financing from IDB Invest and BAC International Bank Inc.

 Arias, Fabrega & Fabrega has assisted Hotel La Compañía with financing provided by the Inter-American Investment Corporation (IDB Invest) and BAC International Bank Inc. to finance the development, construction and operation of Hotel La Compañía.

The hotel, under development, will have 88 luxury rooms and will preserve the original brick, stone and period woodwork on the façade as well as in the various niches of the four 17th century buildings that once belonged to a Jesuit group. Part of Hyatt’s Unbound Collection in Casco Viejo in Panama City, it is expected to open in the first quarter of 2022.

The advice covered all Panamanian aspects of the transaction, including the negotiation of a common terms agreement, the structuring and negotiation of a security package securing the senior loans and the satisfaction of conditions precedent for each disbursement. In addition, the firm advised on negotiations with the Panamanian historical heritage authorities and the Panama Tourism Authority to obtain a 20-year concession (renewable for a further 20 years) for the use of the hotel’s central courtyard (the largest interior courtyard in Casco Viejo); an area that until now had been kept off-limits due to its historical value.

ARIFA’s team was led by partner Fernando Arias F. (pictured left) and associate Ana Isabel Quijano (pictured right), with support from senior associates Vivian D. Holness and Carin Stelp and associate Jazmín Solís.