Simpson Thacher recently represented Equatorial Energia S.A. in connection with its R$1.3 billion (US$622 million) follow-on equity offering. The offering was registered in Brazil, with international placement efforts to qualified institutional buyers and other non-U.S. persons in reliance on Rule 144A and Regulation S under the Securities Act. A substantial portion of the net proceeds from the offering will be used for the financial restructuring of Equatorial’s recently acquired subsidiary, Centrais Elétricas do Pará – CELPA.
Headquartered in Brazil, Equatorial Energia is a holding company, with investments in electricity distribution, generation, trading and services in the northeastern and northern regions of Brazil. In 2011, Equatorial’s subsidiary CEMAR distributed approximately 4,378 GWh to 1.9 million customers in an area of approximately 332,000 square kilometers (128,147 square miles) in the state of Maranhão. Also in 2001, Equatorial’s subsidiary CELPA distributed approximately 6,322 GWh to 1.9 million customers in an area of approximately 1,248,000 square kilometers (481,855 square miles) in the state of Pará.
The Simpson Thacher team for this transaction included Todd Crider, Jaime Mercado, Thiago Spercel, Caetano Altafin Cunha and Manuela Rodrigues Lisboa (Capital Markets); and Robert Holo and Vanessa Cohen (Tax).
