RM | Capital structures $200 million Private Placement for Gas Natural del Noroeste/Energas   

01.07.2021

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On January 7, 2021, RM Capital closed a $200 million private debt financing for Grupo SIMSA, a leading Mexican industrial conglomerate focused on the energy and infrastructure sectors. Unique structure having the two main entities of the group as co-issuers.

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The Senior Unsecured transaction has a 20-year final maturity and no principal amortizations during the first three years, resulting in ~12yr average life. Transaction was priced with a 3.50% fixed interest rate, a remarkably low coupon for a Mexican issuer. 

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This transaction was transformational for the Company in many ways as it allowed it to: (i) refinance secured debt into unsecured, (ii) significantly extend the debt profile, (iii) simplified the debt structure, and (iv) important reduction in the cost despite the increase in the tenor of the debt. 

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RM | Capital acted as exclusive advisor to the Company, structuring and negotiating both the Notes with institutional investors as well as the structuring and execution of an appropriate FX hedging structure.  The transaction was executed on a record 7-week timeframe despite having a holiday season in between.