Scotiabank and Banco Internacional. Algorta Norte refinancing.

1.      Deal Description

Guerrero Olivos represented two local banks, Scotiabank Chile and Itaú Corpbanca (the “Banks”) in the USD54.5 million refinancing of an existing credit agreement of Algorta Norte S.A.

Our banking and finance team was in charge of the whole transaction including the negotiation of the financing documents and the collateral such as mortgages over mining concessions.

Algorta Norte is a mining company specialized in the iodine extraction and production.  Its main facility is located in Antofagasta (North of Chile) with and extraction area of 14.000 hectares, an annual production of 4,000 tons and a USD140 million investment.

Complexity to this transaction was the time frame. The transaction needed to close within a month’s period, which was complex due to the assets involved as collateral. In addition, we closed the deal during a mandatory lockdown in Santiago.

2.      Counsel list

Counsel to Scotiabank and Banco Internacional: Guerrero Olivos

Leading partner: Miguel Coddou ([email protected])

Associates: Diego Rodríguez and Matías Ríos

Scotiabank Chile. In-house counsel: Natalia Mejías

Itaú Corpbanca. In-house counsel: Juan Enrique Vial

Counsel to Algorta Norte: Jara del Favero, Felipe Ovalle 

3.      Date of closing

01/06/2020

4.      Deal Value

USD54,500,000

5.      Jurisdictions involved

Chile