Energuate’s $330 Million Debt Offering


Simpson thacher represented Distribuidora de Electricidad de Occidente S.A. and Distribuidora de Electricidad de Oriente S.A., Guatemalan companies which are collectively known as Energuate (“Energuate”) and are wholly owned subsidiaries of Inkia Energy Limited and IC Power Ltd., in connection with an offering of US$330 million of 5.875% Senior Notes due 2027 issued by Intertrust SPV (Cayman) Limited, acting in its capacity as trustee of a trust established by Energuate.

The Notes are guaranteed by Energuate. The Firm also represented Energuate in connection with the underlying loan agreement among Energuate, Credit Suisse AG, Cayman Islands Branch and The Bank of New York Mellon, as administrative agent and account bank, and the purchase by the Cayman Islands trust of a 100% participation thereof, and in connection with two other loan agreements in the aggregate amount of 1,140,000,000 Guatemalan quetzales between Energuate and Banco Industrial S.A.

Energuate is one of the two large energy distributors in Guatemala and the largest distribution company in Central America measured by population served. As of December 31, 2016, Energuate provided services to approximately 1.7 million regulated customers in Guatemala, which represent approximately 56% of Guatemala’s population. Energuate holds governmental authorizations to provide energy distribution services within its service area until 2048.

The Simpson Thacher team for these transactions included, among others, Juan Francisco Méndez (Picture), Kirsten L. Davis, John Schueller, Pablo M. Richards, Juan E. Vial and Adriana Perez Cavazos (Capital Markets); Ismael Duran (Banking and Credit); and Jonathan Cantor and George Davis (Tax).

Involved fees earner: Juan Francisco Mendez – Simpson Thacher & Bartlett; Kirsten Davis – Simpson Thacher & Bartlett; John Schueller – Simpson Thacher & Bartlett; Pablo Richards – Simpson Thacher & Bartlett; Ismael Duran – Simpson Thacher & Bartlett; Jonathan Cantor – Simpson Thacher & Bartlett; George Davis – Simpson Thacher & Bartlett;

Law Firms: Simpson Thacher & Bartlett;

Clients: Distribuidora de Electricidad de Occidente S.A. ; Distribuidora de Electricidad de Oriente S.A.;