Corporate Debt with a CESCE guarantee

Agere has been named as the sole advisor to the Sponsor for the structuring of the corporate debt, as well as the CESCE guarantee, with the coverage scheme; la Póliza Verde de Inversión, which allows coverage of the default risk of loans granted to foreign subsidiaries of Spanish companies. The Policy covers both political and commercial risks and is not linked to exports.

TRANSACTION RATIONALE

• The Sponsor has an Investment pipeline in several projects in the US.
• For the specific Project, they have already invested 137 MUSD in capital.
• The CESCE guarantee enhances the Sponsor’s investment capacity outside of Spain.

PROCESS CONSIDERATIONS

• CESCE can incentivize utilizing a guarantee that will cover 80% of the risk:
• Investment in the development of new projects outside of Spain.
• Investment of Spanish capital in the construction of new projects.
• An acceptable bank, as determined by CESCE, will be required to provide liquidity.

KEY TAKEAWAYS

• The purpose of the funds is to finance the Equity already provided by the Sponsor.
• CESCE’s approval of approximately 128 MUSD occurs less than two months from when CESCE is contacted.
• CESCE includes in its approval the financing of the premium and the interest during the grace period.
• Sponsor is able to opt for a guaranteed term of up to 15.5 years. Finally, the loan has been structured 12.5 years of amortization with a 14-month grace period.
• The team’s extensive experience with CESCE at Agere has been key to the success of the operation.
• Agere successfully proposed to invert the usual process, obtaining CESCE’s approval before putting the banks that will provide the liquidity into competition.

SCOPE OF WORK

• Definition of the financing strategy, reaching a consensus with the Sponsor.
• Carrying out a highly competitive bidding process with different investors.
• Preparation and presentation of the Sponsor to the lenders, including a valuation proposal, scenario analysis, financing timeline, transaction structure, and process.
• Main point of contact and coordination with the key stakeholders, ensuring the timely flow of information, as well as managing the Due Diligence process.
• Assistance in the drafting, negotiation, and closing of Term Sheets and financial contracts.
• Detailed review of the project permits and materials, coordinating with the legal advisors and auditors of both the lender and CESCE.

Advisor: