Milbank, Tweed, Hadley & McCloy LLP represented Orazul Energy Egenor S. en C. por A. (a Peruvian energy company) in its $550 million inaugural high yield offering of 5.625% senior notes due 2027, which are guaranteed by the issuer’s sister company Aguaytia Energy del Peru S.R.L. and each of their respective subsidiaries.
This transaction is the first high yield bond offering out of Peru since 2014 and the first ever international bond issuance by Orazul Energy Egenor S. en C. por A. The proceeds of the offering were used by Orazul Energy Egenor to refinance existing debt, including debt incurred to partially finance I Squared Capital’s acquisition of Orazul along with other energy assets in Central and South America from Duke Energy in 2016.
The Milbank team was led by Capital Markets partner Carlos Albarracín along with associates Jonathon Jackson, Elizabeth McNichol, Alex Barlow and Claudia Paniague. The team also included Tax partner Andrew Walker and associates Jules Mugema and David Hanno.
Mr. Albarracín said: “Milbank is pleased to complete this important transaction for I Squared Capital and Orazul and the South American energy market. Peru is one of the region’s strongest and most stable economies. We hope this paves the way for similar offerings from Peru to follow and for more high yield debt offerings in Latin America in 2017.”
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