Milbank, Tweed, Hadley & McCloy represented Citigroup, Credit Suisse and Morgan Stanley, as initial purchasers, in the $800 million bond issuance by Comcel Trust, a Cayman Islands trust, guaranteed by Guatemala-based wireless telecom company Comunicaciones Celulares S.A. and its sister companies, better known by the brand name TIGO, subsidiaries of Luxembourg-based global digital service provider Millicom (STO: MIC-SDB).
The offering of 6.875% Senior Notes due 2024, which closed on February 6, is the first international private bond issuance for the TIGO Guatemala group of companies and is one of the largest private bond offerings for a Central American company and the largest in Guatemala.
With over 8 million subscribers, TIGO Guatemala is the leading provider of mobile communications services in Guatemala and Millicom’s largest TIGO network in Central America (others are in Honduras and El Salvador). Millicom has established the TIGO wireless brand in developing markets in the Americas and Africa.
Marcelo Mottesi, head of Milbank’s Global Securities Group, led the team representing Citigroup, Credit Suisse and Morgan Stanley. He was assisted by Securities partner Paul Denaro and associates Matthew Squires and Donald Canavaggio and international attorney Juan Turner; Alternative Investments partner Jay Grushkin; Tax partner Andrew Walker and associate Lysondra Ludwig.
Mr. Mottesi said, “We’re very pleased to participate in this transaction for Comcel, which will support significant growth and diversity of wireless options for customers across Guatemala. The financing also reflects Milbank’s continuing range of milestone capital markets deals in Latin America.”
On other recent Central American offerings of note, Milbank advised underwriters in November 2013 in a $350 million bond offering by Cementos Progreso, S.A. (Cempro), Guatemala's preeminent private construction/infrastructure company. It was Cempro's first-ever trip to the international debt market.
Also in November 2013, Milbank advised Guatemala's Banco de los Trabajadores (Bantrab) in the sale of $150 million in senior notes. It was the first offering by Guatemala's only banking institution formed with public and private capital.
About Milbank
Milbank's Latin America Practice Group is one of the most successful and diverse in the region. For the past three years, Milbank has been named the “Top Project Finance Law Firm” in Latin America by Chambers. The group’s attorneys have advised clients on some of the largest and most innovative transactions across the Americas, including Argentina, Brazil, Chile, Colombia, the Dominican Republic, Mexico and Peru. Attorneys in the group specialize in securities, M&A, project finance, private placements, litigation & arbitration.
