Central Puerto S.A.’s $165 Million Acquisition of Brigadier López Power Plant

Pozo Gowland Abogados, Tavarone, Rovelli, Salim & Miani, Díaz Bobillo, Vittone & Asociados advised on the deal

Central Puerto S.A. (“Central Puerto”) (NYSE: CEPU), announced the purchase and expansion of the Brigadier López plant from IEASA, a company owned by the argentine government, effective April 1, 2019.

The plant currently operates with a gas turbine (280 MW) in an open cycle configuration and is currently in advance stages to add a steam turbine in a combined cycle configuration, which will add 140 MW. Once completed, the combined cycle will increase its efficiency significantly, becoming the most efficient combined cycle of Argentina in terms of heat rate (approximately 1,485 Kcal/KWh), according to CAMMESA’s estimations. The power capacity and the energy produced will be taken by CAMMESA under PPA agreements.

The price offered for the transaction was US$ 165 million, from which US$ 155 million will be paid in cash, and US$ 10 million will be settled with the transfer of trade receivables owed to the company by CAMMESA (LVFVD), accrued in past under prior regulations.

Central Puerto will also assume US$ 161 million in debt, to be paid in 41 monthly equal installments starting on April 2019 and accruing a 6 months-Libor +5% variable or 6.25% fixed interest rate, the highest.

Pozo Gowland advised IEASA with Esteban de Vedia (Picture) Gonzalo Matías Torres and Francisco Pozo Gowland.

Tavarone, Rovelli, Salim & Miani advised BICE Fideicomisos S.A. with Marcelo R. Tavarone, Ana Clara Ordoñez, Nicolás Lupinucci and Juan Pablo Del Compare.

Díaz Bobillo, Vittone & Asociados advised Central Puerto with Víctor Díaz Bobillo, Manuel Goyenechea, Patricio Richards, Camila Evangelista, Facundo Gladstein and Diego Bosch.

Involved fees earner: Diego Bosch – Díaz Bobillo Vittone & Asociados ; Víctor Díaz Bobillo – Díaz Bobillo Vittone & Asociados ; Camila Evangelista – Díaz Bobillo Vittone & Asociados ; Facundo Gladstein – Díaz Bobillo Vittone & Asociados ; Manuel Goyenechea – Díaz Bobillo Vittone & Asociados ; Patricio Richards – Díaz Bobillo Vittone & Asociados ; Esteban de Vedia – Pozo Gowland Abogados; Francisco Pozo Gowland – Pozo Gowland Abogados; Gonzalo Torres – Pozo Gowland Abogados; Juan Pablo Del Compare – Tavarone, Rovelli, Salim & Miani; Nicolás Lupinucci – Tavarone, Rovelli, Salim & Miani; Ana Clara Ordoñez – Tavarone, Rovelli, Salim & Miani; Marcelo Tavarone – Tavarone, Rovelli, Salim & Miani;

Law Firms: Díaz Bobillo Vittone & Asociados ; Pozo Gowland Abogados; Tavarone, Rovelli, Salim & Miani;

Clients: BICE Fideicomisos S.A.; Central Puerto S.A.; Integración Energética Argentina S.A.;

Author: Ambrogio Visconti.