Favorita Group’s $110 Million Syndicated Secured Loan

Holland & Knight advised Banco Latinoamericano de Comercio Exterior, S.A. (Bladex) as administrative agent, collateral agent, sole lead arranger and bookrunner on the deal. Ecuadorian law firm Noboa, Peña, Larrea & Torres and British Virgin Islands law firm Mourant Ozannes acted as co-counsel on the deal.

Banco Latinoamericano de Comercio Exterior, S.A. (NYSE: BLX) closed a US$110 million, seven year, syndicated loan in favor of Favorita Trading Co. Ltd., Fertisa Fertilizantes, Terminales I Servicios C.L., Fertisa AGIF C.L., Reylacteos C.L., and Reybanpac, Rey Banano del Pacifico C.A. The loan was guaranteed by Favorita Fruit Co. Ltd.

Proceeds of the loan will be used to improve the company’s debt maturity profile and finance its ongoing expansion. The loan was 1.4 times oversubscribed, which allowed Favorita to upsize the facility amount to $110 million from its original target of $80 million.

This transaction marks the third syndicated facility arranged by Bladex for Favorita, following a $70 million senior term loan facility successfully closed in 2017 and a $102 million senior term loan facility closed in 2015. Holland & Knight advised Bladex on each transaction.

Favorita Fruit Co. Ltd. is a leading Ecuadorian agribusiness conglomerate with diversified business activities including bananas, dairy, and fertilizers.

Bladex is a supranational bank established by the central banks of Latin American and Caribbean countries to promote foreign trade finance and economic integration.

The Holland & Knight team assisting Bladex consisted of Partner Stephen Double (Picture) and Associate Anthony Rydelek.

In Quito, Noboa, Peña & Torres advised Bladex with Patricio Peña Romero.

Mourant Ozannes advised Bladex in British Virgin Islands with Rachael McDonald and Saraid Taylor.

Involved fees earner: Stephen Double – Holland & Knight; Anthony Rydelek – Holland & Knight; Rachael McDonald – Mourant Ozanne; Saraid Taylor – Mourant Ozanne; Patricio Peña Romero – Noboa, Peña & Torres;

Law Firms: Holland & Knight; Mourant Ozanne; Noboa, Peña & Torres;

Clients: Banco Latinoamericano de Comercio Exterior S.A.;

Author: Ambrogio Visconti