First-time capital markets offering by Chile’s largest supplier of LNG

Milbank, Tweed, Hadley & McCloy LLP 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.

It was the first securities offering by Santiago-based GNL Quintero, which launched in 2009 as the first liquefied natural gas terminal and storage facility in the Southern hemisphere. GNL Quintero, which has become a national supplier of natural gas, is credited with helping Chile diversify its energy resources and reduce the country’s reliance on imported oil. The company is jointly owned by a group that includes Chile’s largest energy generators.

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.

“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,” said Milbank Global Securities partner Marcelo Mottesi, who led the deal team.

Mr. Mottesi was assisted on the transaction by Project Finance partner Daniel Bartfeld, Tax Partner Andrew Walker and associates Erika Hauser, George Naya and Gladisley Sanchez.