Cuatrecasas represents BCI in loan to Celepsa for purchase of shares in Termochilca

Cuatrecasas, through its Lima office, has represented Banco de Crédito e Inversiones – BCI (Miami branch) in connection with a loan granted to Compañía Eléctrica El Platanal (Celepsa) for the purchase of 100% of the shares of the electricity generation company Termochilca.

The financing was secured by a joint and several guarantee from Celepsa’s parent company, UNACEM Corp, as well as a security interest in the shares of Termochilca. The corporate group will partially pay the purchase price of Termochilca and, therefore, the company’s secured claims (senior debt and subordinated bonds).

Thanks to this transaction, Celepsa will be able to double its installed capacity to strengthen its position in the Peruvian electricity market.

Kiomi Osorio, lead partner on the deal, added: “This deal sets the trend in Latin American M&A structures, where more than half of large transactions in terms of value are usually fully or partially financed by debt; and in the case of strategic buyers such as Celepsa, typically with full recourse to the buyer”.

Cuatrecasas’ team was led by partner Kiomi Osorio (pictured), with support from associates Manuel Cruz and Augusto Hostia, as well as due diligence support from associates Álvaro Klauer, Laia Valdespino, Stephanie Torres and Aymé Límaco.