Milbank LLP advised leading growth markets investor Actis in its acquisition of InterGen’s Mexican portfolio of businesses for a consolidated enterprise value of US $1.256 billion, marking Actis’ largest acquisition to date. Actis and global power generation firm InterGen entered into an agreement in December 2017 and closed the deal on April 26, 2018.
InterGen’s Mexico portfolio includes 2,200 megawatts in operation with six combined-cycle gas turbine projects and a 155 megawatt wind project with partner IEnova. InterGen also owns and operates three gas compression stations and one 65-km gas pipeline in Mexico. This is Actis’ third investment in Mexico, following its establishment of Mexican renewable platform Zuma Energía in September 2014 and its establishment of pan-regional renewables platform Atlas Renewable Energy, with presence in Mexico, Brazil, Chile and Uruguay, in 2016.
Milbank also represented Cometa Energía, S.A. de C.V., a wholly-owned subsidiary of leading growth markets investor Actis, in its inaugural Rule 144A/Regulation S offering of US$860 million in aggregate principal amount of 6.375% Senior Secured Notes due 2035.
The proceeds of the offering were used to fund a portion of Actis’ acquisition of InterGen Mexico and repay the existing consolidated project debt of InterGen Mexico. The deal was priced on April 19 and closed on April 24.
The Milbank team was led by Corporate partner John Franchini, Project, Energy and Infrastructure Finance partners Dan Bartfeld and Roland Estevez, and Capital Markets partner Carlos Albarracín, with assistance from Corporate senior associate Aaron Stine and associate Renee Stern, Project, Energy and Infrastructure Finance senior associates Javad Asghari and Justin Niswander and associates Ben Pridgeon, Daniel Rios and Leila Ravi, Capital Markets special counsel Ben Garcia and associates Andres Osornio, Lyndon Plothow, Kelsey Craig and Anya Andreeva, Tax partner Max Goodman and associate James Beebe and Regulatory Advisor James Liles.
Mr. Franchini said: “We are pleased to advise Actis on its largest acquisition to date and its third investment in Mexico. This landmark deal reflects a continued commitment in the Mexican power sector and we expect that interest to continue.”
“This transaction enhances Actis’ strategy of creating scalable energy businesses in key growth markets, including Mexico and more broadly in Latin America,” added Mr. Bartfeld.
Mr. Albarracín said: “We are pleased to have advised Cometa Energía on this landmark capital markets financing. The size and tenor of this transaction demonstrates investors’ support for Actis’ investment strategy, as well as their long-term commitment to Mexico.”
