Cescon Barrrieu, Machado Meyer and others advised on the financing of the expansion and operation of certain sections of RSC-287 Highway between the cities of Tabaí/RS and Santa Maria/RS, comprehending 204.51 km in length and connecting the central with the metropolitan regions of the State of Rio Grande do Sul to allow greater access and outflow of local production.
The project will demand a capex investment of roughly BRL 2.7 billion to be applied in the duplication of the entire granted stretch, as well as in operation, maintenance and conservation activities during the 30-year concession period.
This is the first highway granted to the private initiative by the State of Rio Grande do Sul and marks the entry of the Spanish group Sacyr in infrastructure project operations in Brazil.
The BRL 900 million financing was structured through a public offering of infrastructure debentures issued by the project’s SPE, the Concessionária Rota de Santa Maria, in the total amount of BRL 250 million, together with a R$ 650 million loan obtained by the Company directly from BNDES.
The structure of guarantees of the financing included a pledge on the concessionaire’s capital stock, rights and receivables arising from the concession, waterfall account structure and stand-by letters of credit valid up until the completion of the project. In addition, the L/C providers will also benefit from an equity support agreement through which Sacyr Concesiones, S.L. committed to contribute resources to the project upon verification of certain triggers related to cash generation and project cost overruns.
Cescon Barrieu advised BNDES – Banco Nacional de Desenvolvimento Econômico e Social, Banco Santander (Brasil) and Instituto de Crédito Oficial – ICO and relied on partner Fernando de Melo Gomes; (pictured left), associates Isabela Neves, Beatriz Carvalho and Rafael Morgado.
Machado Meyer was legal advisor to the project’s SPE, Concessionária Rota de Santa Maria and to the sponsors Sacyr Concessões e Participações do Brasil and Sacyr Concesiones and relied on Adriano Schnur (pictured center) and Raphael Zono (pictured right), lawyer Andre Moretti.
Linklaters LLP also represented BNDES – Banco Nacional de Desenvolvimento Econômico e Social for matters governed by Spanish Law;
Jones Day LLP was legal advisor to the guarantors Banco Santander (Brasil) and Instituto de Crédito Oficial – ICO for matters governed by Spanish Law.