Machado Meyer advises on Condumax notes issue

Machado Meyer Advogados acted asdeal counsel on the Condumax Eletro Metalúrgica Ciafundi‘s first issuance of book-entry commercial notes. The offering, carried out in Brazil, totaled BRL 157,000,000 and was structured as a public offering under the automatic registration procedure, on a firm commitment basis, exclusively targeted at professional investors. Banco Bradesco BBI, Itaú BBA Assessoria Financeira were the coordinators.

Pentágono Distribuidora de Títulos e Valores Mobiliários also took part in the operation as another company involved. The deal marked Condumax’s first public offering of commercial notes, illustrating this fundraising route as a viable alternative for mid-to-large industrial companies operating in the power sector.

Acting as deal counsel, Machado Meyer provided full legal advice to the Coordinators and to the Issuer throughout the process. The firm’s work included conducting legal due diligence on the issuer and guarantors, drafting, reviewing and negotiating the transaction documents—including the Issuance Terms, Distribution Agreement, Fiduciary Assignment Agreement, Commencement Notice and Closing Notice—analyzing the conditions precedent to settlement of the offering, issuing a legal opinion satisfactory to the Coordinators, and monitoring the automatic registration of the offering with the CVM as well as its registration with ANBIMA.

Machado Meyer relied on partner Guilherme Azevedo Ferreira Alves, with support from Isabelle Germaine Fernandes Noro Valente and Matheus Freitas Barcelos.