Deal is largest cross-border bond offering ever by a Peruvian corporate, and latest in a string of major capital markets and corporate transactions in Peru by Milbank
Milbank, Tweed, Hadley & McCloy continues its steady pace of large Latin American deals with a major capital markets transaction in Peru’s energy sector. The firm has advised Transportadora de Gas del Peru S.A. in its issuance of $850 million senior notes.
The debt offering is the largest on record by a Peruvian corporate issuer. The senior unsecured notes, due in 2028, yield an interest rate of 4.25% and were offered under Rule 144A and Regulation S.
Lima-based TgP is Peru’s leading transporter of natural gas and natural gas liquids, primarily serving the country’s Pacific coastline region. The company said it expects to use proceeds to refinance existing debt and for general corporate purposes, including expansion of its pipeline and compression facilities to increase capacity.
“The offering by TgP marks a very significant development for both the Peruvian energy and securities markets, given TgP’s prominence in delivering natural gas and natural gas liquids to a large part of the country and the willingness by investors to support the company’s growth plans,” said Milbank Latin America partner Carlos T. Albarracin, who led the deal team advising TgP.
The deal is the latest in a number of significant Peru-based transactions for Milbank. These include representing:
- European, Asian, North American, and Peruvian lenders behind the $1 billion Cerro del Águila hydroelectric site, the largest such project in Latin America;
- underwriters Bank of America Merrill Lynch and Citigroup in a private placement debt offering by Peru’s largest sugar producer, Corporación Azucarera del Perú S.A.;
- Goldman Sachs, Scotiabank, and Bank of America Merrill Lynch as initial purchasers of a $400 million offering by Peru’s third largest bank, Scotiabank Peru SAA;
- initial purchasers JP Morgan, Citigroup, and Lima’s BCP Capital in a $350 million offering by Peru’s largest bank, Banco de Crédito;
- first-time issuer Cálidda, Peru’s largest natural gas distributor, in a $320 million notes offering; and,
- Merrill Lynch, JP Morgan, and BCP Capital in a $450 million initial offering by Peru’s largest consumer products company, Alicorp SAA.
In addition to Mr. Albarracin, Milbank attorneys representing TgP included New York Tax partner Andrew Walker and associates Richard Mo, Hernando Becerra and Pablo Echeverri, and New York-based international attorneys Maria Camila Bages and Lucrecia von Petery.
