Ritch Mueller represented Fideicomiso de Inversión en Energía México (FIEMEX), a special purpose trust managed by Mexico Infrastructure Partners (MIP), in its offering of USD$1.49 billion 7.25% Senior Secured Notes due 2041, issued pursuant to Rule 144A and Regulation S. FIEMEX used a portion of the net proceeds to repay and cancel an existing bridge credit facility incurred to fund the $6.2 billion acquisition of 12 combined-cycle gas turbine plants and a wind farm from Iberdrola. The notes are secured by FIEMEX’s power plants, including the real estate where they are located, ancillary equipment, as well as cash flows generated by them. The collateral documents include a sophisticated waterfall structure to allocate cash flows to service debt, fund reserves, and contribute to operating and capital expenditures for FIEMEX’s plants.
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