Bio Pappel’s Refinancing and Amendment of Credit Facility

December 2, 2019

Cleary Gottlieb represented Credit Suisse, as administrative agent, in a $69 million incremental loan disbursement pursuant to the further extension of credit option of the existing $350 million multitranche senior secured guaranteed term-loan facility of Bio Pappel S.A.B. de C.V. (Bio Pappel).

The loan is secured by pledges of certain properties, equipment, and shares of Bio Pappel and its affiliates, and is guaranteed by Bio Pappel’s subsidiaries. The transaction was intended to refinance a Ps.1.4 billion tranche subject to a prepayment premium, with a combination of Peso-denominated and USD-denominated new loans. The closing date occurred on December 2, 2019.

Cleary also represented Credit Suisse in the negotiation and execution of a joinder agreement by certain newly acquired subsidiaries of Bio Pappel based in the United States and Mexico, and in an amendment to the term-loan facility to allow Bio Pappel to issue $150 million of dual-tranche private senior secured notes. The transactions closed in September 2019.

Bio Pappel is a Mexican company specializing in the manufacturing and sale of paper products made from recycled materials. It is the largest manufacturer of paper and paper products in Mexico and Latin America.