Morales & Besa advised Banco Security on the financing granted to 18 project companies owners of PGMD

April 16, 2019

The transaction consisted on a financing granted to Tralka SpA to partially finance the acquisition costs of 18 project companies, owners of PGMD solar power plants located in the Coquimbo, Valparaiso, Metropolitana, de O’Higgins, Maule and Ñuble regions, and financing the structuring costs.

This financing required to consider a complex corporate structure, in which the loans are granted to the holding company, which is the exclusive owner of all project companies, which own 18 projects, setting a number of conditions precedent for disbursements considering the acquisition of the relevant project companies during their operational phase, and a set of representations and warranties, covenants and events of default at the level of the borrower and each project company. Additionally, the security package includes assets of the borrower and the project companies, following a project finance structure, with some adjustment considering the amount of the loans and maturity of the financing, and providing flexibility to sell projects during the term of the loan.

The team of Morales & Besa that participated in this transaction was led by partners Carlos Silva and Myriam Barahona, together with senior associate Javier Balbontín, and associates Paulo Quinteros, Gabriela Leaño, Manuel José Eyzaguirre and Ignacio Chomalí.