Arias, Fábrega & Fábrega acted as counsel to lending banks, Banco Davivenda, Banco Colpatria, Bancaribe Curazao Bank and Bancolombia Panamá, in connection with the new credit facilities for two lines of credit, for a total value of USD245 million to Termocandelaria Power Limited (TPL) and TPL Holding Ltd (TPL Holding) to refinance existing debt.

The first line of credit for USD105 million, involved Termocandelaria Power Ltd. (Cayman Islands) and Termocandelaria SCA ESP, together with Bancolombia Panamá and Banco Davivienda, as lenders. The second line of credit for USD 140 million, involved TPL Holding Ltd. (Cayman Islands) and Banco Colpatria Multibanca Colpatria S.A., Bancolombia Panamá S.A., Banco Davivienda S.A., Bancaribe Curazao Bank, N.V. And Colpatria Cayman.

The credit facilities refinance loans granted more than a year ago when Colombian industrial conglomerate Mercantil Colpatria and Chilean investment funds SCLEA Energía Activa and Moneda Asset Management led a leveraged buyout of Termocandelaria Power.

The loans are backed by a collateral security package granted by TPL and TPL Holding, including securities granted by TPL’s affiliates in Panama, the Cayman Islands, Delaware and Bermuda.

TPL and TPL Holding control the Termocandelaria and Termobarranquilla thermal power plants on Colombia’s Caribbean coast, and have the largest capacity for thermal energy generation in Colombia.

The negotiations took more than a year and the transaction was completed even after the operators were affected by a complicated and heavy dry season caused by El Niño.