Credit Suisse and Scotiabank in a $400 Million Loan for Bio Pappel

Cleary Gottlieb represented Credit Suisse and Scotiabank Inverlat in their role as lead arrangers in a $400 million senior secured guaranteed term loan facility for Bio Pappel, S.A.B. de C.V.

The loan is secured by pledges of certain property and equipment of Bio Pappel and its affiliates, including a mortgage on McKinley Paper Company’s main plant in New Mexico, and is guaranteed by Bio Pappel’s subsidiaries. The proceeds of the loan were used to refinance existing U.S Dollar and Mexican Peso-denominated debt, finance a portion of Bio Pappel’s going-private transaction and for capital expenditures. The credit agreement was signed on June 11, 2021 and the transaction closed on June 16, 2021.

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.