Dentons and CC on LNG’s acquisition of Colombian gas assets
Dentons Cardenas & Cardenas advised LNG Energy Group on the indirect acquisition of gas assets in Colombia owned by Lewis Energy Group, following which, through one of its subsidiaries, it acquired all of the issued and outstanding shares of Lewis Energy Colombia (LEC) for approximately US$100,000,000.
Clifford Chance also advised LNG in connection with a secured credit facility provided by Macquarie Group to finance the acquisition, which it structured with a payment of US$80,000,000 in cash and US$20,000,000 in shares. This transaction was supported by a US$70,000,000 credit facility and additional financing of US$22,500,000, which involved a private placement and listing of the LNG shares on the TSX Venture Exchange. The facility is a reserve-based financing and is secured by all of LEC’s assets.
Clifford Chance also advised on certain interest rate and commodity hedges entered into in connection with the facility. Dentons advised in multiple jurisdictions, including Colombia, Canada, the United States and the Cayman Islands.
LEC is a gas exploration, production and marketing company operating in Colombia since 2007. LEC is actively developing multiple formations onshore northern Colombia taking advantage of infrastructure strategically located close to major gas markets.
Dentons Cárdenas & Cárdenas’ team consisted of partners Jorge Neher (pictured top left) and Santiago González (pictured top right), area head Carlos Vicioso, and associates Ana Restrepo and Alejandro Parra.
Clifford Chance’s team consisted of partner Hugo Triaca (pictured bottom left), associates Andrés Berry, Lucia Guardone and Fernando Liu, and New York intern Adriana Cabal Gutiérrez. Partner Darren Littlejohn (pictured bottom centre) and associate Elizabeth Kennedy advised on derivatives matters and partner Avrohom Gelber (pictured bottom right) and associate Callum Burnett advised on the tax aspects of the transaction.
