Morales & Besa advised Banco Santander Chile as lender in the financing of VAT associated with different stages of development of five energy projects. The $14m transaction closed on June 27th.
The transaction consisted of financing VAT associated with the construction, commission and operation of 475 MV power plants. The five projects, owned by Prime Energía, are Proyecto Combarbalá, Proyecto San Javier, Proyecto Pajonales, Proyecto Los Cóndores and Proyecto Llanos Blancos.
VAT financing was granted after execution of the financing agreement for the construction of the projects, to be provided by a syndicate of lenders formed by Natixis, New York Branch and Sumitomo Mitsui Banking Corporation, which required to structuring the collateral package to include both.
The VAT facility was subject to Chilean law, but the documentation related to the intercreditor and the borrower’s accounts arrangements will be subject to NY law.
Morales & Besa acted as local legal counsel and Holland & Knight as NY counsel to the VAT lender.
Claro & Cía served as local legal counsel and Paul Hastings as NY legal counsel to Prime Energía Quickstart.
Milbank, Tweed, Hadley & McCloy acted as NY counsel and Garrigues as local legal counsel to the senior lenders.