Milbank LLP advised Sociedad Transmisora Metropolitana S.A. (“STM”) in connection with the $630 million issuance of 6.385% green senior secured project bonds due 2055. STM is a leading Chilean power transmission company and a subsidiary of Grupo Saesa (a JV between Ontario Teachers’ Pension Plan (“OTTP”) and Alberta Investment Management Corporation (“AIMCo”)). The proceeds of the bonds were used by STM, together with the proceeds of a bond issuance in the Chilean market, to repay a $1.1 billion syndicated credit facility used to finance Grupo Saesa’s acquisition of Enel Transmisión Chile, the principal power transmission company in Chile’s metropolitan region.
The Milbank deal team was led by Corporate Finance and Securities partner Carlos Albarracín with special counsel Gonzalo Guitart, along with associates Fernando Quezada and Pamela Molina and international attorney Hugo Bruzone.
Mr. Albarracín said, “We are honored to have once again supported STM and its shareholders Grupo Saesa, OTTP and AIMCo, in this landmark transaction, which marks the conclusion of a complex two-step refinancing exercise. The Rule144A bonds were substantially oversubscribed which shows investors’ confidence in Grupo Saesa and the Republic of Chile.”
