Press Release
February 12, 2019

Holland & Knight Represents Bladex, Banco General and Grupo Promerica on $131.5 Million Syndicated Loan to Ecuador’s Corporación Favorita

NEW YORK (February 12, 2019) – Holland & Knight represented Banco Latinoamericano de Comercio Exterior, S.A. (Bladex) as an administrative agent and Bladex, Banco General and Grupo Promerica as joint lead arrangers and bookrunners on a $131.5 million one-year senior secured, syndicated loan and letter of credit facility for Corporación Favorita C.A. The transaction closed on Dec. 17, 2018, and the loan was fully disbursed on Jan. 30, 2019. The facility was secured by a pledge over Corporación Favorita's liquid deposits in Ecuadorian banks.

Established in Ecuador in 1957 as a supermarket, Corporación Favorita has grown to have a dominant position in various sectors of the Ecuadoran retail market. The company is primarily engaged in the sale of mass consumer products through its network of more than 150 supermarkets (Supermaxi, Megamaxi, Aki, Gran Aki, Super Aki, Jugueton, Supersaldos and Titán) located throughout the country's provinces.

Bladex is a multinational bank originally established by the central banks of Latin American and Caribbean countries to finance foreign trade and promote economic integration in the region.

The loan was structured as a club deal between Bladex, Banco General and Grupo Promerica, acting as joint lead arrangers. Proceeds of the facility were used to support Corporación Favorita's cross border acquisition for a majority interest in Rey Holdings Corp., owner of supermarket chains (Rey, Romero and Mr. Precio), convenience stores (ZAZ) and pharmacies (Metro Plus) in Panama, generating over $700 million in sales.

Holland & Knight Partner Stephen Double, Associate José Avila and International Law Clerk Carlos Ortega, along with the Ecuadoran law firm of Pérez, Bustamante & Ponce, advised Bladex, Banco General and Grupo Promerica on the deal.

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