Cencosud’s $1 Billion Notes Offering

Morales & Besa, Milbank, Carey and Shearman & Sterling advised on the transaction

Cencosud S.A. (Chile) finalized a debt refinancing transaction, including the issuance of $1 billion of 4.375% senior notes due 2027 in a Rule 144A and Regulation S offering, and tender offers for up to $750 million aggregate principal amount of Cencosud’s existing 5.5% Senior Notes due 2021 and 4.875% Senior Notes due 2023.

A portion of the proceeds from the new issuance were used to fund the repurchase of notes in the tender offers, which were structured as an any and all tender offer for the 2021 Notes and a capped tender offer for the 2023 Notes. The tender offers were structured such that any and all of the valid tenders of 2021 Notes would be accepted for purchase before the acceptance of valid tenders of any of the 2023 Notes. The tender offer for the 2023 notes was up to a capped amount of $750 million less the principal amount of 2021 notes validly tendered and accepted for purchase in the tender offers.

JP Morgan Securities and Merrill Lynch, Pierce, Fenner & Smith acted as Underwriters.

Cencosud operates a combination of popular department stores, home improvement and hardware stores, shopping centers and supermarkets, primarily in Chile, Argentina, Brazil, Peru and Colombia.

Morales & Besa advised Cencosud S.A. with Guillermo Morales (Picture), Ignacio Menchaca, Jaime Rosso G., María José Rojas A. and Javiera Veloso F.

Milbank, Tweed, Hadley & McCloy LLP advised Cencosud S.A. with Marcelo Mottesi, Andrew Walker, Sam Badawi, Kaveh Namazie, Mojdeh Pourmahram, Jillian Martynec and David Hanno.

In Chile, Carey advised JP Morgan Securities and Merrill Lynch, Pierce, Fenner & Smith with Diego Peralta, Fernando Noriega, Manuel José Garcés, Elvira Vial and José Tomás Otero.

Shearman & Sterling LLP advised advised JP Morgan Securities and Merrill Lynch, Pierce, Fenner & Smith with Stuart Fleischmann, Griselle Mercado, Flavio Averbug and Mariana Pacini.

 

Involved fees earner: Diego Peralta – Carey; Fernando Noriega – Carey; Elvira Vial – Carey; Manuel José Garcés – Carey; José Tomás Otero – Carey; Guillermo Morales – Morales & Besa; Guillermo Pizarro U. – Morales & Besa; Ignacio Menchaca – Morales & Besa; María José Rojas – Morales & Besa; Javiera Veloso – Morales & Besa; Jaime Rosso G. – Morales & Besa; Marcelo Mottesi – Milbank; Sam Badawi – Milbank; Kaveh Namazie – Milbank; Mojdeh Pourmahram – Milbank; Jillian Martynec – Milbank; Andrew Walker – Milbank; Stuart Fleischmann – Shearman & Sterling; Grissel Mercado – Shearman & Sterling; Flavio Averbug – Shearman & Sterling;

Law Firms: Carey; Morales & Besa; Milbank; Shearman & Sterling;

Clients: Merrill Lynch, Pierce, Fenner & Smith Incorporated; JP Morgan Securities; Cencosud S.A.;

 

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Author: Ambrogio Visconti.