Firm represents underwriters/lenders in three-tranche financing by Mexico's leading toll-road concessionaire Conmex valued at $1.15 billion; deal includes both peso- and dollar-denominated loans as well as interest-bearing and zero coupon notes issued in Mexico’s inflation unit UDIs
Wrapping up a strong year in its Latin American capital markets practice, Milbank, Tweed, Hadley & McCloy struck an especially high note with an innovative debt offering in Mexico that was also one of country’s largest securities deals in 2013.
The firm represented Goldman Sachs and affiliates as initial purchaser, lead arranger, bookrunner, manager and lender in a three-tranche financing by Concesionaria Mexiquense, S.A. de C.V., valued at approximately US$1.15 billion (14.5 billion Mexican pesos). Known as Conmex, the company is an operating subsidiary of a leading Mexican transportation infrastructure concession operator in Mexico, OHL Mexico. Conmex has been in business since 2003 when it was awarded a 30-year concession, which was recently amended to extend the initial term to 2051, to build and operate the Mexico City Beltway, the major toll road circumnavigating the capital. OHL Mexico manages numerous additional concessions for building and operating roads, highways, and railroads in the region around Mexico City that include construction of tunnels, bridges, and viaducts.
OHL Mexico is owned by global construction firm OHL, based in Madrid, Spain.
The multi-part transaction on behalf of Conmex included an offering of notes denominated in Mexico’s inflation unit UDIs (Unidades de Inversion), comprised of interest bearing and zero-coupon notes. The financing also included a pesos-denominated loan agreement to Conmex, as well as a dollar-denominated loan agreement to one of Conmex’s parent companies.
Milbank Securities partner Carlos Albarracín led the deal team, joined by Leveraged Finance partner Michael Bellucci; associates Jessica Cunningham, Meir Hornung, Kate Fern, Hernando Becerra, and international attorney Mario Sosa. The transaction closed on December 18, 2013.
“Given how active our securities group was across Latin America in 2013, it was particularly satisfying to close out the year with such a stand-out transaction as the three-part offering by Conmex, definitely one of the most intricate and creative corporate debt deals seen in Mexico in the last several years,” said Milbank’s Mr. Albarracín. “Infrastructure is one of many sectors of the Mexican economy in high gear right now and we expect to see further momentum for large, innovative debt offerings in 2014.”
In addition to the Conmex deal, Milbank’s securities practice ended the last two weeks of December with major transactions in Peru and Argentina. Overall, the group advised on over 55 transactions in Latin America in 2013, with an approximate value of more than US$26 billion.
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.
