Bomchil and Marval assist in Aluar’s new Notes issuance

Bomchil has assisted Aluar Aluminio Argentino, and Marval O’Farrell Mairal has assisted the underwriters and the representative of the holders, in a new issuance of series 8 notes for a total nominal amount of USD $100,000,000.

The issuance took place on 21 March, where the Notes were secured hard-dollar at a fixed annual nominal rate of 6.25%, maturing on 21 March 2027, integrated and payable in US dollars abroad.

Payment of the Series 8 Notes will be secured by: (i) the grant to Citibank, in its capacity as security agent, of a first priority security interest (pledge) in all of Aluar’s collection rights under aluminium export contracts with certain customers, and (ii) the granting to the Collateral Agent of a first priority security interest (pledge) in all funds deposited in the collection account assigned to the collateral in line with the provisions of Communication “A” 7770 (as amended and supplemented) of the Central Bank of Argentina and in accordance with the provisions of the security agreement entered into by Aluar, Citibank, in its capacity as Collateral Agent and collection account bank, and TMF Trust Company (Argentina), in its capacity as representative of the holders, which is governed by the laws of the State of New York, United States of America.

Linklaters advised Aluar Aluminio Argentino in the US, while Alston & Bird advised the US collateral agent.

The Series 8 Notes are admitted for listing and trading on the Argentine Stock Exchange and the Electronic Open Market, respectively.

It should be noted that the Notes have a particular structure not only because of the guarantee subject to foreign law but also because of the foreign law applicable to the obligation and the place of payment of the marketable securities.

The placement was carried out by SBS Trading and Banco Santander Argentina, as arrangers and underwriters; Balanz Capital Valores, Nación Bursátil, Banco de la Provincia de Buenos Aires, Banco Comafi, Macro Securities, Banco Patagonia, Alchemy Valores; and Industrial Valores as underwriters. In addition, TMF Trust Company Argentina will act as representative of the holders.

Aluar Aluminio Argentino is a nationally owned company managed in accordance with the most demanding international parameters of the industry and in permanent evolution. Thanks to a constant investment plan, its current aluminium production capacity is 460,000 tonnes per year, which allows it to fully supply the local market and export 70% of its production to various markets, including NAFTA countries, Latin America and Asia.

Linklaters’ team consisted of partners Michael Bassett, Conrado Tenaglia and associates Juan Mata, Ramón Augusto Poliche and Mario Lercari.

Alston & Bird was represented by Brad Johnson and Christina Garrett.

Bomchil’s team was led by partner María Victoria Funes (pictured left), with support from associates Luciano Zanutto and Yazmín Sophie Tek.

Marval’s team advising the underwriters was composed of partners Gabriel G. Matarasso (pictured centre)and Sergio Tálamo (pictured right) and associates Lautaro Penza and Sebastian Swinnen, and the external legal advisor to the representative of the holders team included associate Martín I. Lanús.