Press Release
February 11, 2021

Holland & Knight Advises on Innovative $489 Million Chilean Electricity Securitization

NEW YORK (February 11, 2021) – Holland & Knight advised PEC Management, SpA, the issuer administrator to Chile Electricity PEC SpA in its $489 million offering of its Series 2021-1 Zero Coupon Senior Secured Notes due 2028. Holland & Knight also advised TMF Chile Asesorias Empresariales Limitada as verification agent and as a services provider to the issuer. The offering was completed on February 8.

Chile Electricity PEC SpA is a special purpose vehicle incorporated under the laws of Chile that will use the net proceeds of the offering to purchase electricity tariff receivables from AES Gener S.A., Colbún S.A., Enel Generación Chile S.A., Enel Green Power Chile S.A., Engie Energía Chile S.A., Eólica Monte Redondo SpA and Guacolda Energía SpA. The receivables originate pursuant to Chilean Law No. 21,185, which temporarily stabilized the electricity tariffs that power generation companies are permitted to charge their regulated customers in response to social unrest over power prices that began in Chile in October 2019.

Goldman Sachs & Co. LLC acted as the sole global coordinator, bookrunner, initial purchaser and commitment provider in the offering. Additional financing was obtained from IDB Invest. Citibank N.A. acted as indenture trustee in the transaction.

The notes were offered in transactions exempt from registration in reliance upon Rule 144A and Regulation S under the United States Securities Act of 1933.

Holland & Knight New York-based Partner Peter Baumgaertner, Senior Counsel Dan Brown and Associate Julia de la Parra led Holland & Knight's representation of PEC Management, the verification agent and service provider. Baraona Marshall & Cia acted as Chilean counsel.

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