Milbank LLP advised Saavi Energía S.à r.l. in its inaugural offering of $1.1 billion aggregate principal amount of 8.875% senior notes due 2035 and its subsidiaries, Cometa Energía, S.A. de C.V. and Tierra Mojada Luxembourg II S.à r.l. (f/k/a FEL Energy VI S.à r.l.), in their respective concurrent tender offers to buy back part of their outstanding senior secured notes. The proceeds from the bond offering were primarily used to refinance existing debt, including the funding of such tender offers by Cometa Energía and Tierra Mojada Luxembourg II.
This landmark bond offering is the largest holding company bond ever issued out of Latin America and the largest high yield bond ever issued in Latin America’s power and utilities space.
Saavi Energía is the largest private power generator in Mexico in terms of permitted capacity and is an indirect wholly owned subsidiary of certain investment funds advised and managed by GIP.
“We are pleased to have advised Saavi on this milestone offering, which reopened the market for Mexican issuers following the temporary suspension of the executive order on US tariffs,” said Marcelo Mottesi, chair of Milbank’s Corporate Finance and Securities practice and co-head of the firm’s Latin America group. “This transaction is another example of our firm’s leading position in capital markets transactions by companies in the power sector, as well as transactions in Mexico and Latin America generally.”
“We are thrilled to once again support Saavi in another of its landmark financings,” added Dan Bartfeld, chair of Milbank’s Global Project, Energy and Infrastructure Finance group. “The success of this bond highlights that great companies with great assets in Mexico and throughout Latin America can continue to raise extremely attractive capital.”
The Milbank deal team included Mr. Mottesi, Mr. Bartfeld, Corporate Finance and Securities special counsel Andres Osornio Ocaranza, associates Alexia Raad, Alyssa Julian, Ian Hunley and Harper Ricks, and international attorney Manuel Etchevehere. The team also included Tax partner Andrew Walker and associate Michelle Song, Global Risk & National Security partner Bijan Ganji and associate Lauren Trushin, and Executive Compensation and Employee Benefits partner Joel Krasnow.
