Caja de Compensación de Asignación Familiar La Araucana. Bond registration and exchange process

Caja de Compensación de Asignación Familiar La Araucana. Bond registration and exchange process.

1.      Deal Description

Guerrero Olivos’ capital markets team assisted Caja de Compensación de Asignación Familiar La Araucana (“La Araucana”), the second largest social non-profit security/financing entity, representing more than 25% of the market, in the registration and exchange of 2 series of bonds, amounting to USD442 million.

The bond exchange was carried out in the context of the reorganization/restructuring agreement executed a few years ago by La Araucana and its creditors. Creditors representing 80% of the total credits concurred to the bond exchange process and Banco de Crédito de Inversiones acted on behalf of the bondholders of other bond series.

It is important to note that we also represented La Araucana in its restructuring and insolvency procedure, amounting to USD1.7 billion, considered as one of the 2 most relevant reorganizations in Chile. This transaction had high public notoriety and our corporate, insolvency and capital markets teams were praised for creating innovative regulatory structures that allowed all parties to achieve good results in a long and intricate process before the regulatory authorities.

2.      Counsel list

Counsel to La Araucana: Guerrero Olivos

Partners: Juan Enrique Allard and Miguel Coddou

Associates: César Gálvez and Josefina Sánchez

Counsel to the creditors: Garrigues Chile

Partner: Pedro García

Associate: María Fernanda Jara

3.      Date of closing

The creditors commission was informed of the transaction on 09/09/2020. The exchange process closed on 14/08/2020.

4.      Deal Value

USD442 approximately

5.      Jurisdictions involved

Chile