June 2020 - Ferrocarril Central Project in Uruguay Complements USD 860m Senior Financing with USD 75m Second Lien Financing

Astris Finance is pleased to announce the closing and first disbursement of a USD 75m second-lien mezzanine facility for the Ferrocarril Central project in Uruguay, sponsored by Sacyr, NGE, Saceem, and Berkes (the “Sponsors”).

Following up on Astris’ role as exclusive financial advisor for the 860m senior debt package in October 2019, Astris advised the Sponsors on the closing of the subordinated tranche with the Interamerican Development Bank and Global Infrastructure Partners (GIP).  The term loan consists of a USD 7.5m A-loan from IDB Invest and a USD 67.5m B-loan from GIP. It is IDB Invest’s first subordinated A-B loan structure for an infrastructure investment in Latin America.

The mezzanine debt is provided at the project company level under a second lien structure, a relatively rare structure for subordinated debt investments in Latin America which are more commonly placed at HoldCo level. The successful closing of this facility illustrates Astris’ expertise in working across complex, multi-lender and multi-sponsor environments to maximize value for project sponsors and provide enhanced liquidity for key infrastructure assets in Latin America.

The project began construction in 2019, and despite COVID-19 challenges on both the project execution and the financing, Astris and Sponsors were able to execute the closing during construction with an international group of lenders and advisors, a testament to the dedication and creativity of all parties involved. 

The Ferrocarril Central project consists of the design, construction, financing, rehabilitation and maintenance of a 273 km railroad under an 18-year PPP contract. The Project will connect a new, world-class eucalyptus pulp mill to be built in the central region of Paso de los Toros by Finnish firm UPM, a world leader in environmentally responsible pulp products, with the port of Montevideo. The project is expected to play a vital role in the economic development of Uruguay.