In 2020, Frigorífico Concepción S.A. (from Paraguay) issued international bonds under New York Law (144A / Reg S) for a total of USD 161 million with expiration date in 2025 and an interest rate of 10.25% per annum. BKM׀Berkemeyer was legal advisor to Wilmington Trust, National Association, which acted as Indenture Trustee (under New York Law) and as beneficiary of a guarantee trust established under Paraguayan Law with autonomous equity (collateral) represented by real estate and receivables.
On July 21, 2021, Frigorífico Concepción issued new senior bonds for USD 300 million with an annual rate of 7.7% and expiration date in 2028 based on Rule 144A/Reg. S under the structuring of BofA Securities in order to repurchase their formerly owned bonds and fund their business expansion
With this new issuance in mind, Frigorífico Concepción obtained the approval of more than 90% of the number of holders of such previous bonds and consequently, on July 21, 2021, they agreed, among other issues, to appoint Bank of New York Mellon as the new beneficiary of the local trust, as well as its modification, being now a guarantee of the newly issued bonds, releasing the receivables from the autonomous patrimony and keeping only certain properties as collateral.
Frigorífico Concepción is among the top five exporters of meat products in Latin America. Its facilities can house up to 40,000 head of cattle. The parent company, Grupo Concepción, exports meat products to more than 30 countries through eight subsidiaries that operate within the processing industry.
Senior Associate Milena Sljivich and partner Martín Carlevaro participated on this transaction, once again advising Wilmington Trust, National Association in the name of BKM.
