Alcogal acted as Panamanian law counsel to the initial purchasers, Scotiabank Capital, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Banco General, in connection with the first 144A/Reg bond issuance of Empresa de Transmisión Eléctrica, S.A. (ETESA) of US$500 million. The deal closed in May 2019.
Our team in charge of this transaction was led by partner Arturo Gerbaud and associates Rafael Marquínez and Rita de la Guardia.
Moody’s assigned a first-time Baa1 issuer rating to Empresa de Transmision Electrica, S.A. (“ETESA” or “Issuer”). The outlook is stable.
Summary of Offering Terms
Issuer: Empresa de Transmisión Eléctrica S.A.
Format: Rule 144A / Regulation S
Use of Proceeds: Fully repay a loan with Citibank, a credit facility with Caja de Ahorros, a credit facility with the Central American Bank for Economic Integration and a partial debt repayment with Banco Nacional.
Amount: Up to US$500 million
Ranking: Senior Unsecured
Amortization: Amortizing Tenor Up to 30 years
Covenants: Investment grade covenant package
Change of Control: Put to Issuer at 101%
Listing / Registration: Panama
Governing Law: New Yok
Electric Transmission Company S.A. (Etesa) is a Panamanian state company incorporated as a corporation in 1998 for the transport of high voltage electric power in the territory of Panama.
With offices in Panama City, Etesa owns the extendable concession for the transmission of high voltage electric power granted by the Public Services Authority (ASEP) until the year 2025.
Its transmission system is based on 10 sections of 230KV lines that go from the Bayano Hydroelectric Plant to the Progreso substation on the border with the Republic of Costa Rica and 115KV lines that go from the Las Minas Bay Thermoelectric Power Plant in Colón to the Panama I substation, and from the substation Caldera to the La Estrella and Los Valles Hydroelectric Plants.
About Alcogal – Panamanian law counsel
We represent lenders and borrowers in loan financings, underwriters and issuers in debt, equity and dealer managers and solicitation agents in exchange offers, tender offers and consent solicitations, in high-grade and cross-over credits.
With a record of demonstrated excellence developed over decades of experience, Alcogal assists, as capital markets lawyers in Panama, our corporate clients in accessing capital markets and helps investment banking clients compete in these markets by providing strategic counsel across industries and borders.
Representing both issuers and underwriters, the firm enjoys a premier standing in advising on offerings for common stock, high yield debt, convertible debt and investment grade debt.
If you need a Panamanian law counsel, contact us.