Mateo Mendoza, Luis Armando Tolosa and Julio Melo

Mendoza acts in loan modification granted to ExcelCredit

Mendoza Abogados has acted as counsel to the creditor banks, and Banca de Inversión Bancolombia, as lead arranger, in an agreement to close several amendments to a COP $ syndicated revolving credit facility for the origination of libranza loans in Colombia and the payment of certain financial liabilities of ExcelCredit.

This transaction was closed in January, with Cuatrecasas acting as advisor to ExcelCredit.

The advice involved modifications to the documentation that will ensure the continuity of the funding structure for portfolio origination, which had previously been designed and used. Consists in an innovative figure which employs a debtor autonomous patrimony as the acquirer of the portfolio originated by ExcelCredit through successive portfolio purchase and sale operations paid with the resources derived from the disbursements of the financing. The structure was designed in such a way that the debtor autonomous equity, through the proceeds derived from the acquired portfolio, would generate sufficient resources to service the debt on its own, mitigating not only the credit risk of the transaction but also the insolvency risk of the guarantor.

Bancolombia, Banco Santander Negocios de Colombia, Banco de Bogotá and Banco de Occidente acted as creditors.

ExcelCredit is a Colombian libranza operator and one of the main originators of libranza loans in Colombia.

Camilo Martinez Cubides acted as in-house counsel to Bancolombia Investment Banking.

Cuatrecasas’ team included partner Juan Carlos Puentes, and associates Felipe Londoño and Daniela Rivera.

Medoza’s team comprised partner Mateo Mendoza (pictured left), with support from associates Luis Armando Tolosa (pictured centre) and Julio Melo (pictured right).

L Giselle Estrada