Holland & Knight Advises Lenders in Off-Balance Sheet Securitization for CYDSA Subsidiary
MEXICO CITY (October 13, 2016) – Holland & Knight represented BBVA Bancomer and Banco Mercantil del Norte (Banorte) in the financing of an IRFS off-balance sheet trade receivables securitization for several subsidiaries of CYDSA, one of Mexico’s largest chemical companies. The transaction involved the securitization of accounts receivables acquired by a special purpose vehicle (SPV) on a continuous basis through a revolving factoring agreement.
BBVA Bancomer and Banorte agreed to fund MXN$525 million in the form of a senior tranche. BBVA Bancomer also acted as administrative agent in the transaction. Stamford, Conn.-based Finacity Capital Management also invested by means of an intermediate subordinated note and will manage the ongoing program administration and reporting. The securitization has been assigned a local AAA rating by HR Ratings de México, S.A. de C.V.
The Holland & Knight team advising the Mexican banks included partners Antonio Casares and Guillermo Uribe and associates Jorge Aviles Cerezo and Euridice Palma.