Milbank LLP has advised Guacolda Energía SpA in connection with the concurrent exchange offer, tender offer and solicitation of consents of its outstanding $274 million Rule 144A senior notes due 2025. The concurrent offers closed on August 17 and resulted in the repurchase of $22 million in principal amount of existing notes in the cash tender and the issuance of $168 million new amortizing senior notes due 2030 in the exchange offer. Guacolda also obtained consents to amend its existing indenture governing the 2025 notes to remove certain restrictive covenants and align the terms with those of the new notes. Bank of America acted as placement agent for the new notes and dealer-manager for the cash tender.
Guacolda is a Chilean electricity generation and transmission company, with more than 25 years of presence in the Chilean market. Guacolda owns and operates a 760 MW coal-fired power complex, consisting of five 152 MW coal-fired plants. The transaction is part of Guacolda’s refinancing and de-levering strategy following the introduction of new regulations in Chile aimed at curtailing and ultimately phasing out coal-fired power generation as part of Chile’s energy transition policy.
The Milbank team was led by Global Capital Markets partner Carlos Albarracín along with associates Fernando Quezada, Abir Varma and Agustin Videla. Partner Andrew Walker and associate Michelle Song provided tax advice and support.
