At the end of December 2020, Frigorifico Concepcion issued international bonds in NY under Rule 144A/Regulation S for a value of USD 21 million, which meant a new reopening, after the issuance of USD 100 million in January and the first retap of October 2020 for USD 40 million, all expiring in 2025 and 11% interest. BKM Berkemeyer was once again legal advisor to Wilmington Trust, National Association, who acts as Indenture Trustee (under NY law) and as beneficiary of a guarantee trust established under Paraguayan law.

With the proceeds from the last two issuances, Frigorifico Concepcion aims to increase production at its meat production facilities in Paraguay, as well as to pay off existing debts and fund the working capital necessary for the construction of a new plant in Bolivia.

A subsidiary incorporated in Bolivia, owned by Frigorífico Concepción, acted as guarantor of the debt and the collateral is represented by real estate and accounts receivable.

BKM Berkemeyer’s participation consisted in the review of all the reopening documents from the perspective of local legislation, especially the guarantee trust contract established in the country, whose autonomous patrimony serves as collateral for the entire operation as well as the review of the other documents of the transaction, such as the offering memorandum, the indenture and acknowledgments.

Frigorífico Concepción is among the top five exporters of meat products in Latin America. Its facilities can house up to 40,000 heads of cattle. The largest company brand, Grupo Concepción, exports meat products to more than 30 countries through eight subsidiaries that operate within the processing industry.

On behalf of BKM, Milena Sljivich, Senior Associate, and Martín Carlevaro, Partner, participated in this transaction.