TozziniFreire, Pinheiro Neto and other firms in debt refinancing for Foraco International

TozziniFreire represented Marathon Asset Management LP, Oaktree Capital Management and Kartesia Securities IV S.A.; Pinheiro Neto has represented Foraco International S.A

TozziniFreire, Pinheiro Neto and other firms acted on deal comprising serious legal challenges related to a debt refinancing related to Foraco International S.A.’s $146.8 million of outstanding securities obtained in 2017 from affiliates of Oaktree Capital Management, L.P. (Oaktree) and Kartesia Securities IV S.A. (Kartesia), and which mature in May 2022.

The early redemption of such bonds, in the amount of $146.8 million, was completed through a cash refunding of $91.0 million and the issuance of 9,300,000 common shares of the Company, representing approximately 9.4% of the capital, for the benefit of Oaktree and Kartesia.

The cash repayment was funded by a new $100 million senior secured notes facility provided by Marathon Asset Management LP (Marathon), maturing in December 2025.
The debt refinancing resulted in a pre-tax gain for the Company of $35.8 million and a $55.8 million reduction in net debt.

TozziniFreire acted as Marathon, Oaktree and Kartesia special counsel on Brazilian law matters with team led by partner Alexei Bonamin (pictured left) and associates Felipe Tulio de Paiva, Heitor Junqueira Franco and Adriano Venancio Cavalvanti.

Latham & Watkins and Clayton Utz also represented the same company.

Pinheiro Neto Advogados was the counsel to Foraco International S.A. with partner Francisco Werneck Maranhão (pictured right), associates Miguel Britto Ferreira, Marcos Saldanha Proença, Antonio Carlos de Almeida Braga.

Weil, Gotshal & Manges LLP, Fasken Martineau DuMoulin LLP and Squire Patton Boggs also represented Foraco.