Holland & Knight Advises Bladex on $110 Million Syndicated Secured Loan for the Favorita Group
NEW YORK (January 27, 2020) – Holland & Knight advised Banco Latinoamericano de Comercio Exterior, S.A. (Bladex) as administrative agent, collateral agent, sole lead arranger and bookrunner on a $110 million senior secured syndicated loan to Favorita Trading Co. Ltd., Fertisa Fertilizantes, Terminales I Servicios C.L., Fertisa AGIF C.L., Reylacteos C.L., and Reybanpac, Rey Banano del Pacifico C.A. The loan was guaranteed by Favorita Fruit Co. Ltd. The transaction closed on December 17.
Favorita is a leading Ecuadorian agribusiness conglomerate with diversified business activities including bananas, dairy and fertilizers.
Bladex is a supranational bank established by the central banks of Latin American and Caribbean countries to promote foreign trade finance and economic integration.
Proceeds of the loan will be used to improve the company’s debt maturity profile and finance its ongoing expansion. The loan was 1.4 times oversubscribed, which allowed Favorita to upsize the facility amount to $110 million from its original target of $80 million.
This transaction marks the third syndicated facility arranged by Bladex for Favorita, following a $70 million senior term loan facility successfully closed in 2017 and a $102 million senior term loan facility closed in 2015. Holland & Knight advised Bladex on each transaction.
The Holland & Knight team assisting Bladex consisted of Partner Stephen Double. Ecuadorian law firm Noboa, Peña, Larrea & Torres and British Virgin Islands law firm Mourant Ozannes acted as co-counsel on the deal.