Morales & Besa advised Sonnedix in obtaining post-construction PMGD portfolio financing

May 26, 2020

Morales & Besa succesfully advised Sonnedix in the post-construction financing of a portfolio of current and future electricity generation projects, operated directly by Sonnedix or through its subsidiaries, located in the Coquimbo, Valparaíso, Maule and Libertador General Bernardo O´Higgins regions, consisting of photovoltaic plants that constitute “PMGD” – small means of distributed generation.

The advisory contemplated the performance of a confirmatory due diligence process, the negotiation of a financing agreement granted by Natixis, New York Branch, under New York law, for a maximum amount of USD $ 87,000,000 and other documentation required for this purpose. Such agreement established the terms and conditions required for the financing of existing plants, and the criteria by which plants that in the future come into operation can access this financing, pre-establishing the requirements for new projects were eligible.

The importance of this operation is that the need for a due diligence process to determine if a new project can be incorporated into financing is eliminated, and replaced by pre-established eligibility criteria, which benefits the debtor’s planning for incorporating new projects to the financing, and reduces transaction costs.

The Morales & Besa team that participated in the transaction was led by partner Carlos Silva, along with senior associates, Javier Balbontín, Paloma Infante, and Juan Carlos Valdivieso and associates Sebastián Nieme and María Jesus Venegas.