Adding another large capital markets transaction for leading Chilean retailer Cencosud S.A., Milbank, Tweed, Hadley & McCloy has advised the company in its sale of $1 billion in 10-year bonds – the offering was increased by $200 million due to strong investor demand.
Cencosud is using the proceeds to finance its acquisition of a large portfolio of assets in Colombia formerly owned by French retail giant Carrefour S.A. That deal, valued at $2.6 billion, is bringing Cencosud more than 90 prime shopping outlets across Colombia, including 72 hypermarket stores.
This is Milbank’s third major deal assignment of 2012 on behalf of Cencosud. The retail holding company, based in Santiago, is the third largest retailer in Latin America and operates a variety of supermarkets, department stores, shopping malls and home improvement stores across Chile, as well as in Brazil, Argentina, Peru and Colombia.
In addition to having advised Cencosud in its acquisition of the Carrefour properties, announced in October, Milbank represented the retailer in a global equity offering in June, including the company’s IPO debut on the New York Stock Exchange. The offering raised approximately $1.3 billion and in the process Cencosud became one of only 11 Chilean companies listed on U.S. exchanges.
Leading the deal team for Milbank was New York partner Marcelo Mottesi, head of the firm’s Global Securities Practice, along with Of Counsel Frank Vivero and associate Richard Mo.
“Cencosud has enjoyed a huge break-out year in 2012 and we’re extremely pleased to have worked with the company in its key capital markets transactions, as it continues to raise its profile among international investors and lenders” Mr. Mottesi said.
