Clifford Chance counsels on $1.2bn financing to STM
Clifford Chance has counselled the lenders, issuing banks and hedge providers in the US$1.2 billion multi-tranche, dual-currency financing provided to Sociedad Transmisora Metropolitana (STM) for the acquisition of the entire stake in Enel Transmisión Chile, to Enel Chile and to other shareholders participating in the tender offer in Chile.
The lenders provided a multi-tranche senior secured term loan in two currencies (US dollar and Chilean peso) and the issuing banks provided letters of credit on behalf of STM. In addition, the acquisition was financed with a combination of debt provided by the lenders and certain equity contributions made by STM’s parent company, Inversiones Grupo Saesa Limitada (Saesa).
Enel Transmisión Chile operates 683 km of transmission lines and manages 60 substations (57 owned and three owned by third parties) in the Santiago metropolitan area.
For its part, Saesa is the second largest electricity distributor in Chile in terms of geographic coverage.
The Clifford Chance team was led by partner Fabricio Longhin (pictured left) and associate Julián Hurtado Vallejo (pictured right) and included associate Joyce Moore and foreign law clerks Adriana Cabal Gutiérrez and Lucía Guardone; partner Darren Littlejohn and associates David Martinez and Alexis Haddock; and partner Avrohom Gelber and associate Wei Bin Tan.
