Morales & Besa advised Los Guindos Generación SpA in the refinancing of Los Guindos Plant and financing of a project to increase the installed capacity of the plant

March 15, 2018

Morales & Besa advised Los Guindos Generación SpA in a syndicated loan granted by international Banks for the refinancing of the Los Guindos power plant (currently operating and owned by the borrower) and the financing of expansion works to increase its capacity in 133 MW, projects for a total amount of US$ 135 million. Additionally, the transaction included a facility for financing VAT related to the expansion works, for a total of US $ 15.7 million. The project sponsors are Inversiones Los Cerezos SpA (and affiliate of General Electric) and TIG Energy Chile SpA (an affiliate of the Ingelec Group).

The biggest challenges related with this transaction were the coordination between the legal and commercial teams to be able to comply with all the requirements of the new lenders and the exiting lenders; making significant adjustments in the New York law documentation and the borrower´s corporate structure to satisfy the contribution needs of the project expansion; and finally, the extension of the advice to environmental issues which aroused during the process that were successfully overcome.

Morales & Besa team involved in this transaction included partners José Miguel Carvajal, Myriam Barahona and Francisca Pérez, senior associates Ignacio Delpino and James Channing and associates Paulo Quinteros, Gonzalo Machuca and Aurora Muñoz.