Chilean Tariff Stabilization – Credit Rights Purchase and Securitization Program

Baraona Marshall actively participated in the securitization of certain credits originally owned by Chilean electricity generation companies against Chilean distribution companies under the Chilean Tariff Stabilization Law.

The operation included the purchase by the Inter-American Development Bank of said credits and the negotiation, structuring and execution of diverse documentation under New York Law (purchase contracts, accounts contract, etc.) as well as the applicable Chilean documentation. .

Under the same Chilean Tariff Stabilization Law, Baraona Marshall participated in the securitization of said credits. The operation consisted of the constitution of an SPV entity under Chilean legislation which, in turn, acquired from the electricity generation companies certain collection rights against the distribution companies. The purchase of said credit rights by the SPV was financed through the issuance by the company of a 144A/Regulation S zero coupon bond under the Securities Act of the United States of America of 1933. Subsequently, the SPV made another private bond issue to finance the purchase of credits. The transactions involved the execution of various documents under New York law ( indenture and and their respectiveindenture complements , sales contracts, account contracts, etc) as well as the applicable Chilean documentation (mandates, assignments, etc).

The operations were directed by partner Juan Pablo Baraona.