TRSM and Bruchou on syndicated loan of MSU Energy
Tavarone Rovelli Salim Miani has advised MSU Energy and Bruchou & Funes de Rioja, the Arrangers and Lenders, in the granting of a syndicated loan in the amount of US$222,000,000.
The sum was granted by Industrial and Commercial Bank of China (Argentina), Banco de Galicia y Buenos Aires and Banco Santander Argentina, acting as arrangers; and Banco BBVA Argentina, Banco Hipotecario, Banco de la Nación Argentina, Banco de la Ciudad de Buenos Aires, Banco de Valores, and Banco de la Provincia De Buenos Aires as lenders, in conjunction with the Organisers.
The Syndicated Loan was subscribed on November 7, disbursed on December 23, and the proceeds were successfully applied to redeem the portion of MSU Energy’s notes that was not voluntarily surrendered in exchange for the New Notes 2030, maturing in 2025, issued at an interest rate of 6.875%, for a total amount of US$ 600,000,000.
The Syndicated Loan has a grace period of 12 months, matures in 2027 and is secured by a trust assignment to secure its collection rights under certain PPA (Power Purchase Agreement) contracts.
Concurrently, TRSM advised MSU Energy and Bruchou & Funes de Rioja advised the International Placement and Information Agents and Local Placement Agents, in the issuance of the international secured bond at an interest rate of 9.750% maturing in 2030 for a face value of USD $400,000,000. 000, which consisted of (a) an exchange offer of the International Bond 2025 that were voluntarily delivered in exchange for New Negotiable Obligations 2030, for a nominal value of USD $223,352,460; and (b) the issuance of additional New Negotiable Obligations 2030 integrated in cash for a nominal value of USD $176,647,540.
The Syndicated Loan Facility of USD $222,000,000 together with the New Issue was applied to redeem those nominal amounts of the 2025 International Bond that were not validly tendered and accepted for exchange pursuant to the Exchange Offer. In this way, MSU Energy obtained the funds necessary to refinance the entire International Bond 2025 and completed its complex refinancing process, significantly improving its long-term debt profile and strengthening its financial position for future growth.
MSU Energy was advised in-house by its Legal Manager Ezequiel Matias Abal.
TRSM’s team consisted of partner Francisco Molina Portela (pictured left), and associates Eduardo N. Cano, Maria Pilar Ubertalli, Agustín Ponti, Juan Cruz Carenzo and Ramiro Catena.
Bruchou’s team included partner José María Bazán (pictured right), and associates Leandro Exequiel Belusci, Quimey Lía Waisten, Sebastián Pereyra Pagiari, Facundo Suárez Lon, Malena Tarrío and Teo Panich.
