Ferrere advises CUTCSA on first issue of trust securities
Ferrere Uruguay has advised on the structuring and issuance of securities of the CUTCSA I Financial Trust for UI 150,000,000 (approx. USD $23m) in the Electronic Stock Exchange.
The subscription was made in two tranches, wholesale and retail, between 19 and 20 July. The wholesale tranche was allocated UI 135m, and the remaining UI 15m was allocated to the retail market, where the latter was well accepted and its demand covered almost the entire offer; while in the wholesale tranche the total demand was UI 154.3m.
The debt securities were rated BBBuy Investor Grade by CARE Risk Rating Agency, and will pay an interest rate of 4.75% per annum in Indexed Units during the 7 year term.
The issue of the securities received a total demand amounting to UI 168.5 MM, thus exceeding the amount offered with an average price above par of 102.08. Investors will receive an average return of 4.26% per annum as holders of the debt securities.
The funds raised will be used to fulfil CUTCSA’s investment plan for the period 2020 – 2025, mostly oriented towards the acquisition of electric buses, associated equipment and charging infrastructure. The remainder will be used by the company to reprofile part of the financial liabilities also associated with the renewal of the fleet.
CUTCSA acted as trustor, while EF Asset Management, Ferrere’s trustee, will act as trustee.
Ferrere’s team was led by lawyers Diego Rodriguez (pictured right) and Federico Lemos Lorenzo (pictured left). The financial structuring of the issue was led by CPA Ferrere, with the participation of Alfonso Capurro and Federico Campagna.
