Tuesday, January 30, 2018

Compañía General de Combustibles issuance

We advised Compañía General de Combustibles S.A. (the “Company”) in its issuance of non-recourse and secured notes –Series 10- (“Obligaciones Negociables Clase 10”) on the local market for an aggregate amount of US$100,.000,.000.

The issuance was secured through a pledge upon the holding of the Company in Gasinvest S.A. (which is the controlling company of Transportadora de Gas del Norte S.A.) and a fiduciary assignment of the future dividends and any flow of funds (such as the proceeds obtained from any sale of the shares) derived from the holding by the Company of the shares of Gasinvest S.A., Gasoducto GasAndes S.A. (a company incorporated in Chile) and Gasoducto GasAndes (Argentina) S.A.

The Company intends to use the net proceeds obtained from the offering for investments in the Austral basin and refinancing of its current debt.

This transaction was authorized for public offering by the Comisión Nacional de Valores (the Argentine Securities Commission) and is listed in Bolsas y Mercados Argentinos S.A. and Mercado Abierto Electrónico S.A.

It is worth noting that this is the first issuance of non-recourse debt in Argentine capital markets. Furthermore, the transaction required analysis of regulatory matters in Argentina and Chile, which varied during the duration of the deal, and was achieved by the constant cooperation of the parties’ counsels.

M. & M. Bomchil represented Compañía General de Combustibles. Fermín Caride (partner), María Victoria Tuculet and Laura C. Zinnerman (associates) handled this transaction.