Morales & Besa advised Sociedad Concesionaria Autopista Costa Arauco S.A., concessionary of Route 160, in the refinancing of its debt

January 31, 2018

Morales & Besa successfully advised Sociedad Concesionaria Autopista Costa Arauco S.A., concessionary of Route 160, Tres Pinos – Coronel section, in the refinancing of its debt, by Itaú Corpbanca and Banco del Estado de Chile.

The transaction involved negotiation of the terms of the replacement of BBVA as lender and as collateral agent, as well as the assignment of Itaú Corpbanca as new collateral agent. Consequently, it implied the release of some of the guarantees previously granted and the negotiation of the terms of new guarantees, to secure the obligations assumed under the Refinancing, and the termination of a sponsor support agreement subject to Spanish law.

The Refinancing included the negotiation of its terms to reflect the current state of the project, as well as the granting of a new tranche of UF 300,000 by Itaú Corpbanca and Banco del Estado de Chile, consisting of a line for the financing of exploitation bank bonds. The tranche for the financing of exploitation of the existing bank bonds was terminated, which implied the granting of liquid guarantees under Chilean law and corporate guarantees subject to Spanish Law, to secure the obligations of the Concessionaire with BBVA with respect to these bank bonds, which needed to be negotiated.

Lastly, and by virtue of the Refinancing and the assignment of credits, the hedging agreements of the previous financing with BBVA were terminated and/or amended.

Morales & Besa team involved in this transaction was formed by the partner Carlos Silva with the participation of associates Felipe Corvalán, Edmundo Varas, Javier Balbontín and Pedro Pablo Valenzuela.