Nachrichten October 30, 2015

Shearman & Sterling Advises ENCE on Its €250 Million High Yield Notes Offering and €90 Million Multicurrency Revolving Credit Facility

Shearman & Sterling represented ENCE Energía y Celulosa, (ENCE), a Spanish issuer listed on the Madrid, Barcelona, Valencia and Bilbao Stock Exchanges, on its high yield notes offering of €250 million senior notes due 2022 and its €90 million multicurrency revolving credit facility (RCF). The 2022 Notes and RCF are senior obligations of ENCE and are both guaranteed on a senior basis by certain subsidiaries of ENCE.

The net proceeds from the offering will be used to redeem ENCE’s existing €250 million senior secured notes due 2020 and to pay certain transaction fees and expenses. Shearman & Sterling previously represented ENCE in 2013 on the issuance of its 2020 Notes and its revolving credit facility. 

ENCE is a leading pulp and energy production company and the largest producer of bleached hardwood Kraft pulp from eucalyptus in Europe, measured by capacity. It also has a significant pulp-linked energy generation and cogeneration business and a significant independent energy generation business. ENCE has pulp production and energy generation facilities in Pontevedra, Navia, Huelva and Mérida, Spain. 

The Shearman & Sterling team of lawyers in the firm’s London and Washington, DC offices included partners Jacques McChesney (London-Capital Markets) and Caroline Leeds Ruby (London-Finance), associates Kara Major, Adebanke Adeyemo, Andy Zwecker (all London-Capital Markets), and Miles Muirhead (London-Finance) and trainee solicitor Theodora Dimitrova (London- Finance). Partner Kristen Garry and associate Kammy Lai (both Washington, DC-Tax) and counsel Simon Letherman and associate Sarah Moir-Porteous (both London-Tax) advised on tax aspects of the transaction. Counsel Mehran Massih (London-Environmental) advised on environmental matters. The team was also assisted by associate Elena Dzhurova, former secondee Lennart Østenfjeld and former summer associates Petra Plasilova and Ashiq Aziz (all London-Capital Markets).