Clifford Chance
Clifford Chance advises on dual-tranche notes issuance by Colombian leading multi-utility EPM
July 17, 2020
Clifford Chance advises on dual-tranche notes issuance by Colombian leading multi-utility EPM
A Clifford Chance team led by Capital Markets partner Hugo Triaca represented Empresas Públicas de Medellín E.S.P. ("EPM"), the leading multi-utility services company in Colombia with operations in Chile, El Salvador, Guatemala, Mexico and Panama, on a dual-tranche offering of (a) Ps.635,519,000,000 aggregate principal amount of additional 8.375% Senior Notes due 2027 (the "Ps. Notes") and (b) U.S.$575,000,000 aggregate principal amount of 4.375% senior notes due 2031 (the "US$ Notes," and, collectively with the Ps. Notes, the "New Notes").
This new transaction, EPM's second dual-tranche offering and its sixth issuance in the international capital markets, allowed EPM to improve its liquidity position in times of global uncertainty caused by the COVID-19 pandemic.
EPM provides electricity generation, electricity transmission, electricity distribution, gas distribution, water, sewage and solid waste management services in Colombia. EPM also (i) provides electricity transmission, distribution and commercialization services through subsidiaries in El Salvador, Guatemala and Panama; (ii) is involved in electricity generation activities through subsidiaries in Chile and Panama; and (iii) provides water, water reuse and waste water management services through subsidiaries in Chile and Mexico. EPM is owned by Medellín, Colombia’s second-largest city.
The New Notes were offered and sold in the United States to qualified institutional buyers only, in accordance with Rule 144A, and outside the United States to non-US persons in accordance with Regulation S under the US Securities Act of 1933. The New Notes will be listed on the Official List of the Luxembourg Stock Exchange.
Working with Hugo on this transaction from New York were associate Mariana Estevez, foreign law clerk Fernando Castillo Villalpando and summer law clerk Gabriela Flores-Romo. Partner Avrohom Gelber and associate Michaela Morr advised on tax matters.
