Investment Energy Resources Limited’s $700 Million Green Senior Secured Notes Offering

Simpson Thacher represented Citigroup Global Markets Inc. and J.P. Morgan Securities LLC, as initial purchasers, in the offering.

Investment Energy Resources Limited (“IERL”) executed its inaugural offering an aggregate principal amount of US$700 million of its 6.25% Senior Secured Notes due 2029 (the “Notes”). Obligations under the Notes are guaranteed by substantially all of the subsidiaries of IERL that own energy generation facilities and secured by the pledge of the common stock of substantially all of such subsidiaries. The Notes were offered and sold in reliance upon Rule 144A and Regulation S under the Securities Act, and will be listed on the Luxembourg Stock Exchange, and admitted to trading on the Euro MTF market of that exchange.

The net proceeds of the offering of the Notes were used to repay obligations under the existing project finance indebtedness of IERL and certain of its subsidiaries and to pay related fees and expenses. IERL intends to use an amount equivalent to the net proceeds from the offering of the Notes to finance and/or refinance new or existing projects, assets or activities that are “eligible green projects.”

IERL is the entity through which Corporación Multi Inversiones corporate group, one of the largest conglomerates in Central America and the Caribbean, owns the operating assets of its energy business. IERL and its subsidiaries own the largest and most diversified private renewable energy portfolio in Central America and the Caribbean in terms of installed capacity.

The Simpson Thacher team for the initial purchasers included Jaime Mercado (Picture), Kirsten L. Davis, Teresita Acedo and Luis Pereyra (Capital Markets and Banking and Credit); and Sophie Staples and Nicole Humphrey (Tax).

Involved fees earner: Teresita Acedo – Simpson Thacher & Bartlett; Kirsten Davis – Simpson Thacher & Bartlett; Nicole Humphrey – Simpson Thacher & Bartlett; Jaime Mercado – Simpson Thacher & Bartlett; Luis Miguel Pereyra – Simpson Thacher & Bartlett; Sophie Staples – Simpson Thacher & Bartlett;

Law Firms: Simpson Thacher & Bartlett;

Clients: Citigroup Global Markets Ltd; J.P. Morgan Securities LLC;

Author: Martina Bellini