Milbank LLP advised the global coordinators and joint bookrunners in connection with Cox Asset México, S.A. de C.V.’s (“Cox”) landmark $2 billion aggregate principal amount debt issuance in the US capital markets, comprising US$1 billion 7.125% senior secured notes due 2032 and US$1 billion 7.750% senior secured notes due 2036. The offering closed May 8, 2026. The proceeds of the offering were used to repay approximately US$1.98 billion of the loans outstanding under a bridge loan the proceeds of which were used to partially finance Cox’s US$3.5 billion acquisition of Iberdrola México, S.A. de C.V., a leading Mexican power generation company with a combined installed capacity of 2,601 MW (“Iberdrola Mexico”). Cox is a special purpose vehicle established by Cox ABG Group, S.A. (the “Sponsor”) to consummate the acquisition of Iberdrola. Through the acquisition of Iberdrola Mexico, Cox Mexico consolidates the leading integrated conventional and renewable energy platform in Mexico, including a portfolio of 16 power plants, and the largest private qualified supply business in Mexico with a 25% market share in the qualified supplier segment.
Barclays Capital Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Goldman Sachs & Co. LLC served as global coordinators and joint bookrunners. BBVA Securities Inc., Santander US Capital Markets LLC and Scotia Capital (USA) Inc. served as joint bookrunners.
The Milbank deal team was led by Corporate Finance and Securities partner Carlos Albarracín, special counsel Andres Osornio Ocaranza and associates Fernando Quezada, Mauricio Nieto Jaramillo, Siak Goh and Ronny Vaisman, and international attorney Hector Avila. The team also included Tax partners Andrew Walker and Joel Krasnow and associates Blake Rocks and Michelle Song, and Global Corporate partners Bob Kennedy and Ross Shepard. The Corporate Finance and Securities team also advised affiliates of the initial purchasers as lenders in connection with a $2.65 billion secured bridge loan used by Cox to consummate the acquisition of Iberdrola Mexico in April 2026, and a $15 million secured revolving credit facility that closed concurrently with the notes offering.
Mr. Albarracín said, “This is a groundbreaking deal for Mexico and Latin America and one of the largest leveraged buyouts in that country to date. The Rule 144A/Regulation S secured notes transaction was approximately four times oversubscribed by international investors, making it one of the most significant US debt offerings by a Latin American corporate issuer. This transaction reflects the strength of Milbank's platform across capital markets, acquisition finance and complex energy transactions, and our commitment to delivering for our clients on the most complex transactions in the market. We are extremely proud to have represented the global coordinators and joint bookrunners in this landmark transaction for the Mexican energy sector.”
