Pérez Alati, Grondona, Benites & Arntsen advised the International Finance Corporation in a loan of U$S 500,000,000 to Pan American Energy S.L., Sucursal Argentina (“PAE”).
The proceeds of the loan will be used, in particular, to finance the expansion of the Campana Refinery of PAE located in Argentina in order to increase its production of low sulfur diesel, gasoline and other refined products of up to 105,000 barrels per day including, without limitation, an increase in the Refinery’s nameplate crude capacity, the expansion, improvement, revamping and/or addition of a fuel gas treatment plant, delayed coker unit, diesel hydro-treater, and related facilities, utilities and offsite units; the enhancement of the quality of the Refinery’s product output as such relates to lower sulfur clean fuels; the reduction of Refinery emissions to air and water effluents; and associated working capital needs.
The financing consists of an unsecured loan, structured under three (3) tranches with a maximum repayment term of approximately eight (8) years, and a grace period of 24 months calculated from the execution date of the loan agreement. Also, the loan will accrue interests at a floating rate based on LIBOR of six (6) months.
PAE's main activity is the exploration, development and production of oil and gas, refining and marketing of hydrocarbons and by-products.
Legal advisors of Pan American Energy S.L., Sucursal Argentina
External legal advisors for Argentine law
Pérez Alati, Grondona, Benites & Arntsen (PAGBAM)
Partner Diego Serrano Redonnet and associates Tomás Fernández Madero, Ignacio Payarola, Nicolás del Campo Wilson and Paula Balbi.
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