Improving macroeconomic conditions in Colombia spurred AES Corp. subsidiary Chivor to obtain $253 million of debt to refinance a 1,000 MW hydro plant. Ernesto Gonzales, project director for integrated utilities in Arlington, Va., said the new debt replaces a $260 million Bank of America Securities-led bank loan set to expire next year.
The transaction comprises an $83 million, seven-year Colombian peso-denominated bank loan and a $170 million senior secured notes offering. The bank loan is co-led by Colombia-based Corfinsura and Colcorp and is priced at 5 1/2% over Colombia's local prime rate.
The notes carry a 9.75% coupon and a 9.8% yield against comparable treasuries, Gonzales said. Deutsche Bank was the sole bookrunner on the deal and B of A served as co-manager. Deutsche Bank also handled its past four refinancings, Gonzales added. Seven other undisclosed banks participated in the syndication, he said. The Chivor hydro plant, roughly 100 miles east of Bogota, generated about 11% of Colombia's electricity between January and September this year.