Shearman And Sterling

News April 05, 2021

Lender’s Counsel for the Contemplated Acquisition of Colbún Transmisión

Shearman & Sterling advised JPMorgan Chase Bank, N.A., as lead arranger, in connection with the financing of the approximately $1.3 billion contemplated acquisition of the Chilean power transmission company Colbún Transmisión S.A. by Alfa Desarrollo SpA, a special purpose vehicle 80% owned by APG Energy & Infra Investments SLU, a part of the Dutch pension fund APG, and 20% owned by Celeo Redes SLU, the power transmission operator owned by the Spanish company Elecnor S.A.

The financing will consist of a senior secured term loan facility, the proceeds of which will be applied by Alfa Desarrollo for the acquisition of 100% of all outstanding shares in Colbún Transmisión from its current sole shareholder, Colbún S.A. Colbún Transmisión, one of the largest transmission platforms in Chile, owns and operates 899 km of power transmission lines and 27 power substations in the National Electric System (Sistema Eléctrico Nacional) of the Republic of Chile, which are critical in connecting key power generation plants within Chile’s energy grid in an area servicing approximately 74% of the Chilean population. The transaction, which will be subject to approval from Chilean antitrust authorities, is expected to close in 2021.

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