Clifford Chance

Clifford Chance advises on TermoCandelaria Power Limited's bridge and notes reopening transactions

Clifford Chance represented J.P. Morgan and Scotiabank (i) as joint bookrunners, lead arrangers and lenders, in a US$80 million bridge financing transaction and (ii) as initial purchasers in a US$186 million notes reopening transaction by TermoCandelaria Power Limited ("TPL"). TPL owns and operates the largest portfolio of thermal power plants in Colombia and is one of the largest electric power generation companies in the country with 1,283 MW in installed capacity. Disbursements made by TPL under the bridge financing, which closed in December 2019, were used to make initial payments under an EPC Contract and repaid with a portion of the proceeds from the notes reopening, which closed in January 2020.

TPL will use the proceeds from the transactions to convert its TECAN power plant located in Cartagena, from a Bryton-cycle power plant to a combined cycle power plant, increasing the installed capacity of the plant to 566 MW. TPL's TECAN power plant expansion will increase power to Colombia's Caribbean coast and contribute to the economic growth and development of the region.

Clifford Chance had previously advised on TPL's inaugural notes offering, for US$410 million. The 7.875% senior notes due 2029 were offered and sold under the Rule 144A/ Regulation S format and listed on the Singapore Exchange Securities Trading Ltd.

The New York-based Clifford Chance team was led by Capital Markets partner Hugo Triaca and Banking & Finance partner Guido Liniado, who were assisted by associates Leonela Vaccaro Padron, Lane Feler, Andres Berry, Nicolas Ocampo and foreign law clerk Fernando Castillo. Partner Avrohom Gelber advised on tax matters.

Clifford Chance has been recognized for decades as a preeminent law firm in Latin America. The Firm has led the way in developing successful, novel financing structures for a diverse client-base, and is constantly innovating its service offering, such as with a dedicated Latin America group specialized in capital markets, bank and project financing structures representing initial purchasers, underwriters, issuers and investors. The Firm's lawyers have extensive experience in the region's distinct business, legal and regulatory landscapes. They provide expertise that cuts across a full range of relevant practices, while aligning pioneering solutions with the unique characteristics of the Latin American market and the changing needs of clients.