GNL Quintero refinances debt through bond issue

Santiago-based GNL Quintero, which launched in 2009 as the first liquefied natural gas terminal and storage facility in the Southern hemisphere, has carried out the first securities offering to refinance its project finance debt.

GNL Quintero is the first land-based Terminal for the reception, unloading, storage and regasification of Liquefied Natural Gas (LNG) in the southern hemisphere.

Milbank, Tweed, Hadley & McCloy LLP has announced that the firm represented a group of international banks as initial purchasers in the $1.1 billion bond offering by leading Chilean natural gas provider GNL Quintero S.A.

The $1.1 billion high-yield offering consisted of 4.634% of senior notes due 2029 and closed on July 31. GNL Quintero will use proceeds from the 15-year amortizing bonds to refinance existing project financing issued to fund the company’s construction of its large natural gas port in Santiago.

Milbank represented leading international banks Citigroup, JP Morgan Chase, Bank of America, HSBC, BBVA and Banco Santander as initial purchasers.

Milbank Global Securities partnerMarcelo Mottesi, who led the deal team, said:

"We are delighted to have worked with the initial purchasers in helping GNL Quintero make its inaugural offering in the international capital markets – the size of the issue and response by the market reflects what a major player GNL Quintero has become in just a few short years in the South American energy sector.”

GNL Quintero is a private corporation, whose shareholders are Terminal de Valparaíso S.A. (Enagas - Oman Oil), ENAP, Endesa Chile and Metrogas, all prestigious companies with a long history in the energy industry.

In 2008 GNL Quintero obtained a long term Project Finance syndicated loan for US$ 1.057 billion with 14 international financial institutions (BBVA, BG, Banesto, Banco Santander, Calyon, Fortis-BNP Paribas, ING, Intesa Sanpaolo, Mizuho, West LB, Bank of Tokyo-Mitsubishi UFJ, DnBNORbank and Dekabank).