Simpson Thacher counsels MSU Energy on exchange offer

Simpson Thacher has counselled MSU Energy in connection with its offer to exchange up to $400 million principal amount of its 6.875% senior secured notes due 2025 (the 2025 Notes) for newly issued 9.75% senior secured notes due 2030 (the 2030 Notes),

The offering was made pursuant to applicable exemptions from the registration requirements under the Securities Act of 1933, as amended (the ‘Securities Act’).

MSU Energy issued approximately $223 million aggregate principal amount of 2030 Notes pursuant to the exchange offer.

Simpson Thacher also represented MSU Energy in connection with its concurrent offering of approximately $177 million aggregate principal amount of 2030 Notes pursuant to exemptions from the registration requirements under the Securities Act for an aggregate principal amount of 2030 Notes of $400 million.

MSU Energy used the proceeds from the offering to fund the redemption of the 2025 notes not exchanged in the exchange offer. The remaining outstanding 2025 notes were repaid with proceeds from a local syndicated credit facility entered into by MSU Energy.

MSU Energy is engaged in the development and operation of power generation projects in Argentina and is part of the MSU Group, a leading player in the agribusiness sector in Argentina and throughout the region.

Simpson Thacher’s team comprised partner Juan M. Naveira (pictured), counsel Alejandro de Ramon-Laca, and associates Susan Uquillas and Alberto Mattos.