We advised the initial purchasers and local placement agents on EDEMSA’s international issuance of US$150,000,000 notes
Empresa Distribuidora de Electricidad de Mendoza S.A. (EDEMSA), a leading electricity distribution company in Mendoza, successfully completed the international issuance of its Class 6 Notes, denominated and payable in U.S. dollars, under its global issuance program of up to US$400 million (or its equivalent in other currencies), authorized by the Argentine Securities Commission (CNV).
The Class 6 Notes were issued at a price of 92.930% of par, in an aggregate principal amount of US$150,000,000, and bear step-up interest at the following rates: 9.75% per year until July 28, 2029, 10.75% until July 28, 2030, and 11.75% until maturity on July 28, 2031. Amortization of principal will occur in three equal installments starting in 2029.
The Notes were issued pursuant to Rule 144A and Regulation S under the U.S. Securities Act of 1933 and are listed on the Official List of the Luxembourg Stock Exchange and admitted to trading on its Euro MTF Market, as well as on Bolsas y Mercados Argentinos S.A. and A3 Mercados S.A.
BofA Securities, Inc. and UBS Securities LLC acted as Initial Purchasers in the international offering (the “Initial Purchasers”), while Balanz Capital Valores S.A.U. and Global Valores S.A. acted as Local Placement Agents (the “Local Placement Agents”) in Argentina.
The Bank of New York Mellon acted as Trustee, Co-Registrar, Principal Paying Agent, and Transfer Agent under the Indenture (as supplemented from time to time) entered into with EDEMSA and Banco de Valores S.A. acting as Representative of the Trustee in Argentina, Registrar, Transfer Agent, and Paying Agent in Argentina.
Legal Advisors to Edemsa under U.S. law
DLA Piper Argentina, through its New York Desk in Buenos Aires, with Marcelo Etchebarne (Partner and co-chair of Securities for Latin America), Nicolás Teijeiro (Of Counsel), Daiana Suk and Ignacio Bard (Senior Associates) and, in New York Josh Kaufman (Partner and Global Chair of Securities) and Marcos Taiana (Associate).
Legal Advisors to Edemsa under Argentine law
DLA Piper Argentina also acted as legal counsel to Edemsa under Argentine law, with a team led by Partner Alejandro Noblía, and Associates Federico Vieyra and Mariana Carbajo.
In-House Legal Advisors to Edemsa
Edemsa’s in-house legal team included Andrés Aruani, Legal Affairs Manager; María Carolina Reta, Attorney specialized in corporate law; and Carina Cocuelle, Deputy Manager of Regulatory Affairs.
Legal Advisors to the Initial Purchasers and the Local Placement Agents under U.S. law
Clifford Chance US LLP acted as legal advisor to the Initial Purchasers and the Local Placement Agents under U.S. law, through its team led by Partner Hugo F. Triaca and Associates David Rondon, Juan Andrés Bosch and Cristian Ragucci.
Legal Advisors to the Initial Purchasers and the Local Placement Agents under Argentine law
Bruchou & Funes de Rioja acted as legal counsel to the Initial Purchasers and the Local Placement Agents under Argentine law, through its team led by Partner Alejandro Perelsztein and Associates Juan María Rosatto and Teo Panich.
Legal Advisors to the Trustee, Co-Registrar, Principal Paying Agent, and Transfer Agent
Reed Smith LLP acted as legal counsel to the Trustee, Co-Registrar, Principal Paying Agent, and Transfer Agent, with a team led by Partner Adam Solowsky.
