Hunton Andrews Kurth LLP Advises Promerica Financial Corporation in $200 Million Debt Offering

Hunton Andrews Kurth LLP (“Hunton”) advised Promerica Financial Corporation (“Promerica”) in its initial debt offering of $200 million senior secured notes due 2024 pursuant to Rule 144A/Reg. S. The notes will be listed on the Luxembourg Stock Exchange and received a B+ and BB- credit rating from S&P and Fitch, respectively. Proceeds from the offering, which closed November 14, 2018, will be used to refinance the existing debt of Promerica and to fund future growth of Promerica and its subsidiaries.

Promerica is a Panamanian bank holding company that owns majority interests in commercial banks in nine different countries in Central America, the Caribbean and South America. Promerica has assets of U.S.$14 billion and over 12,000 employees.

The Hunton deal team, led by Fernando C. Alonso, included Stefano D’Aniello, Andrew Spector, Carlos García, Rail Seoane, Kim Nolte, Juan Olano and Maria Laura López Martínez. The team also received support from James Davidson and Cary Tolley.

Alonso, head of Hunton’s Latin America practice, commented as follows, “This transaction underscores the receptiveness in the U.S., among institutional investors, for Latin American issuers with strong financial results and sound operations and corporate structure. Promerica’s offering is the first in the U.S. by a Latin American financial institution holding company with multiple bank subsidiaries in several jurisdictions. Promerica’s success as a financial institution derives from its diversified operations from nine banking subsidiaries located in Central America, the Caribbean and Ecuador.” Alonso added, “Effective leadership at Promerica -- through its management -- made this offering possible.”

Promerica’s local counsel included Alcogal in Panama, Garcia Feraud e Hijos in Ecuador and BLP in Guatemala.

Credit Suisse Securities and Bank of America Merrill Lynch were the lead bookrunners in connection with this transaction, and were represented by Cleary Gottlieb Steen & Hamilton LLP, along with ARIFA as local counsel in Panama, Ferrere as local counsel in Ecuador and Arias as local counsel in Guatemala.