Linklaters advises ContourGlobal on acquisition financing for the purchase of CHP portfolio in Mexico

Linklaters has advised ContourGlobal plc on the financing of the acquisition of two natural gas-fired combined heat and power (CHP) plants located in Mexico, together with development rights and permits for a third plant, from petrochemical company Alpek S.A.B. de C.V. (“Alpek”).
 
The CHP portfolio comprises 932MW of potential capacity located on Alpek’s petrochemical sites in the Mexican states of Veracruz and Tamaulipas, of which 518MW was operational at closing.
 
The purchase price of US$724 million in cash was financed through a combination of project financing together with existing cash resources of ContourGlobal. The Bank of Nova Scotia ("Scotiabank") arranged and underwrote a US$535 million, seven-year mini-perm syndicated loan to finance the acquisition.
 
The Linklaters team was led by partner Vijaya Palaniswamy and counsel Andrew Compton with support from associates April Kent, Mina Whangbo, Somin Lee and Joseph Hahn. Partner Jonathan Ching also provided advice on hedging aspects of the transaction. 
 
The deal was announced January 2019 and closed on November 25, 2019.