Colbún in Refinancing

June 10, 2014

Cleary Gottlieb represented longtime client Colbún, a Chilean electric power company, in connection with the negotiation of a $160 million senior unsecured credit facility.

This was among Colbun and The Bank of Nova Scotia, as administrative agent, and Banco del Estado de Chile, New York Branch, Banco Santander-Chile, DNB Group, Agencia en Chile and Scotiabank & Trust (Cayman), as lenders, joint lead arrangers and bookrunners. The facility amended and restated four existing bilateral credit facilities between Colbún and each of Bank of Tokyo-Mitsubishi UFJ, HSBC and Scotiabank having in the aggregate US$160 million principal amount outstanding (Cleary Gottlieb advised Colbún on the original financing in 2012).

The amendment provided for an extension of maturities and the syndication of Colbún’s existing bilateral facilities. The credit agreement was signed on June 9 and the transaction, which included the related assignments of certain loans under Colbún’s existing bilateral facilities, closed and became effective on June 10. The senior unsecured loan is scheduled to mature in 2021.