Guatemala Geothermal power plant project finance. The financing was structured through a Note Purchase Agreement under a single draw note for US$42,000,000.00. It involved several agreements subject to diverse laws from different jurisdictions, but mainly NY and Guatemala. It required for local counsel in USA, Cayman Islands and Guatemala. The local security structure is composed of a Security Trust Agreement to which current and future real estate, moveable property, equipment, contractual rights, rights in rem, equity ownership interests, insurance and other assets of the Project, were transferred as security interest. Additionally, a complex Accounts and Payment Administrative Trust Agreement for the management of all Project Revenues was created, providing for a waterfall for O&M, well-field maintenance, debt service, debt service reserve, VAT and other related payments.

Comment by Alejandro Cofiño Rodríguez:
“We started this deal back in August 2008 and with several adversities (not limited to the world-wide financial crisis and extremely scarce credit) and with the deal almost crashing at a mid-way point, we were creative and persistent enough to bring it to safe harbor. Closing this financing was especially satisfactory, as negotiations of the many different agreements were very detailed and specific and very demanding. In addition, the final 3 week push to make it to the target closing date was particularly stressful and complicated for everyone. But with the help of extremely efficient and business-oriented attorneys on both sides and magnificent financial negotiations by TCW and Ormat, the deal was a success.” 

Value of deal
US$42,000.000.00

Firms Involved
Consortium-Rodríguez, Archila, Castellanos, Solares & Aguilar:  Alejandro Cofiño Rodríguez, Maria Cristina Beltranena and Lourdes Leal.
Paul, Hastings, Janofsky & Walker LLP: Raj Pande and David Marshall from
Chadbourne & Park:  Noam Ayali and Marissa Alcala;
Carillo & Asociados:  Rodolfo Alegría and Melida Pinea