Deutsche Bank in $175 Million Export Prepayment Loan Facility

Cleary Gottlieb represented Deutsche Bank as lead arranger in the negotiation of a new $175 million senior secured export prepayment loan facility for Marfrig Alimentos, which closed on May 20. This is the second export prepayment facility for Marfrig in which Cleary Gottlieb has represented Deutsche Bank as lead arranger. In addition to Deutsche Bank, ING Bank, Bank of Nova Scotia and Corporacion Andina de Fomento also participated in the transaction as lenders.

Marfrig is Latin America’s second-largest beef producer and one of the largest food exporters in Brazil. Export prepayment loan facilities are one of the most common forms of financings in Brazil, in part because, under Brazilian law, payments of interest and commissions related to the financing of export transactions receive favorable treatment under Brazilian tax and insolvency laws.