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.