Continuing a string of major capital markets transactions in Latin America, Milbank, Tweed, Hadley & McCloy LLP has closed on four debt offerings in Peru valued at $1.37 billion involving leading companies in the country’s banking, mining, natural gas, and consumer products industries.
Issuers included the largest bank and largest natural gas distributor in Peru, a leading polymetallic mining company, and one of Latin America’s top diversified consumer products companies, owner of more than 100 brands. Milbank’s representations included the following as underwriter counsel:
- Bank of America Merrill Lynch, JP Morgan Securities, and Lima-based BCP Capital Financial Services SA as initial purchasers of a $450 million initial debt offering for Alicorp SAA, the largest Peruvian consumer products company. The offering comprised 3.875% Senior Notes due 2023, with Alicorp using the proceeds to pay for two recent strategic acquisitions. The transaction, led by Global Securities practice group leader Marcelo Mottesi, closed on March 20, 2013.
- JP Morgan Securities and Morgan Stanley & Co. in a first-time debt issuance by Compañía Minera Milpo SAA, a Peruvian mining company with global zinc operations and significant exposure in the copper, silver, and lead sectors. The offering consisted of $350 million in 4.625% Senior Notes dues 2023. In 2012, Milpo was Peru’s second-largest lead producer, third-largest zinc producer, and sixth-largest of refined copper. The transaction, led by Global Securities practice group leader Marcelo Mottesi, closed on March 28, 2013.
- JP Morgan Securities, Citigroup Global Markets Inc., and BCP Capital Financial Services SA in a $350 million offering by Banco de Crédito, Peru’s largest bank. Concurrent to the offering, the issuer is proposing to repurchase old notes from holders in exchange for new notes. The issuance, led by Global Securities practice group leader Marcelo Mottesi, closed April 1, 2013.
As issuer counsel, Milbank represented:
- Gas Natural de Lima y Callao SA (aka Cálidda), the largest natural gas distribution company in Peru, in issuing $320 million in 4.375% Senior Notes due 2023; it was the company’s first-ever issuance. Cálidda will use proceeds to repay all its outstanding debt, with the Notes remaining its only post-issuance debt. The offering, led by Global Securities partner Carlos Albarracín, closed April 1, 2013.
Mr. Mottesi said, “Investor confidence in Latin America is very high, particularly in Peru, which is enjoying strong economic growth. It’s especially gratifying that several of these deals represented first-time offerings by issuers, an excellent indicator of the ability of Peruvian companies to tap the capital markets.”
