Hogan Lovells and Holland & Knight guide first off-balance securitization in Mexico

Hogan Lovells advised Cydsa on the transaction while Holland & Knight acted for the banks. 

Cydsa SAB de CV is headquartered in Monterrey, Mexico, and is one of Mexico´s largest chemical manufacturers as well as operating in the co-generation of electricity and steam.

The transaction involves the securitization of accounts receivables of several Cydsa’s subsidiaries acquired by a special purpose vehicle (SPV) on a continuous basis through a revolving factoring agreement. Factoring is a financing method in which a business sells accounts receivable at a discount to a third-party funding source to raise capital.

Through the deal, Cydsa will initially obtain $30 million dollar first disbursement of a syndicated credit facility provided by BBVA Bancomer and Banorte. This transaction, the first of its kind in Mexico, provides several specifics that as a whole, establish the “off balance” certification by one of the big four international accounting firms.

Finacity Capital Management, based in Stamford, also invested by means of an intermediate subordinated note and will manage the ongoing program administration and reporting.

Partner René Arce Lozano led the Hogan Lovells team in Monterrey advising Cydsa.

The Mexican banks, BBVA Bancomer and Banorte, instructed a Holland & Knight team in Mexico led by partners Antonio Casares and Guillermo Uribe.

Hogan Lovells and Holland & Knight guide first off-balance securitization in Mexico

Ignacio Abella

thelatinamericanlawyer.com

The Latin American Lawyer is a bimonthly digital magazine, published by Iberian Legal Group, available in Spanish and Brazilian Portuguese. It represents the main source of information in the legal business sector in America Latina. The digital magazine – and its portal – address to the protagonists of law firms and in-house lawyers. The magazine is available for free on the website and on Google Play and App Store.

In every issue of the magazine, you will find rankings of lawyers, special report on trends, interviews, information about deals and their advisors.

For further information, please visit the Group’s website www.lcpublishinggroup.com

Iberian Legal Group
Registered office: C/ Manuel Silvela, 8 - Oficinas 1 Dcha 28010 Madrid España

Copyright 2022 © All rights Reserved. Design by Origami Creative Studio

SHARE

Share on linkedin
Share on twitter
Share on facebook
Share on whatsapp
Share on email
Share on telegram