María Olga Rivera

B&E counsels lenders on $239m syndicated facility

Barros & Errázuriz has counselled the lenders on the structuring, negotiation and closing of a syndicated financing for more than $239m granted to Sociedad Concesionaria Hospital Coquimbo.

The funds will be used to finance the construction and operation of the new Coquimbo Hospital, located in Chile’s Fourth Region. This project is a public works concession awarded to China Railway Construction Corporation, a Chinese state-owned company, a global leader in infrastructure solutions, which will allow the implementation of a first class hospital facility with more than 600 beds available for patient care in the north of Chile (the ‘Concession’).

The transaction was completed on 2 December, for an amount of USD $239,271,200 (UF 8,450,565). Morales & Besa acted as advisor to the borrower.

In a first phase, B&E actively participated in the assessment of the main legal risks of the Concession, analysing all relevant laws, regulations, bidding conditions and industry practices. The firm was instrumental in drafting a due diligence report and reports designed to address specific concerns of the Creditors. In a second phase of the project, B&E advised on the preparation of the extensive documentation required for the closing of the financing, including a syndicated multitranche financing agreement and the standard security package for a project finance, as well as the negotiation of the construction and operation and maintenance contract for the Concession.

Banco de Crédito e Inversiones and Banco Santander-Chile acted as structuring agents, and Banco Security, Banco BICE, Banco BTG Pactual, Banco Consorcio, China Construction Bank, Agencia en Chile and Compañía de Seguros de Vida Consorcio Nacional de Seguros as creditors.

B&E’s team was led by partner María Olga Rivera (pictured), with the support of associates Geraldine Ugueto, Pablo Ulloa, Francisco Matte and Tommaso Gritti.

L Giselle Estrada

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