Morales & Besa advised Enjoy S.A. in the issuance of bank guarantees to present to the Chilean Superintendence of Casinos of Games

July 11, 2018

Morales & Besa successfully advised Enjoy S.A. in various financing for the issuance of bank guarantees (Boletas de Garantía in spanish) to ensure the Chilean Superintendence of Casinos of Games the obligations and economic offer presented by the four operating companies that were awarded with operating permits: Casino del Lago, Casino de Puerto Varas, Casino de Viña del Sea and Bay Casino. The financing was granted by Banco BTG Pactual Chile, Banco Internacional and Banco Security.

Enjoy S.A. is an operator of casino games and resorts present in Chile with eight branches, and in Argentina and Uruguay,  with one in each country.

These companies contracted  insurance policies with Cesce Chile Aseguradora S.A. to guarantee its obligations with the issuing banks of the bank guarantees. Given the times of the operation, it was necessary to obtain a bridge loan from Tanner Servicios Financieros S.A. for Enjoy S.A.

This operation was challenging, not only because of the high amounts of the bank guarantees, but also because of the reduced term for the negotiation and implementation of the operation, which corresponded to the term between the award of the operation of the various casinos and the presentation before the Chilean Superintendence of Casinos of Games.

It is worth noting that the use of insurance policies as collateral for the issuance of bank guarantee  is a novel structure in the market.

The team of Morales & Besa that participated in this operation was integrated by partner Myriam Barahona; senior associate, Ignacio Menchaca and associate, Bernardo Mora.