Hunton & Williams Assists Promerica Financial Corporation in its Acquisition of Banco Citibank de Guatemala and Affiliates

Hunton & Williams LLP advised Promerica Financial Corporation (Promerica) in its acquisition of Banco Citibank de Guatemala, S.A. and affiliate Cititarjetas de Guatemala Limitada.

The deal, which closed on October 31, increases Banco Promerica Guatemala’s total assets in Guatemala to US$1.7 billion and 98 banking branches, resulting in the bank’s leading position in the Guatemalan credit card and consumer banking business. Banco Promerica Guatemala is among the banks with the highest rates of growth and profitability in the Guatemalan financial sector. The transaction received all necessary approvals.

Hunton also advised Promerica in obtaining a syndicated credit facility to fund a portion of the acquisition. The financing was led by Bladex, Credit Suisse and Deutsche Bank as joint lead arrangers and book runners.

“This transaction is transformational for Promerica, gaining significant market share and a stronger foothold in the credit card business in Central America,” stated Fernando C. Alonso, chairman of the firm’s Latin American practice group.

David R. Yates, added: “This type of opportunity is very unique in the region. The quality of assets and operations were attractive to Promerica and complemented its existing portfolio.”

Fernando Margarit, who headed the financing of the acquisition, commented: “The financing was particularly complex given the number of jurisdictions that it involved, but was successful thanks in large part to the hard work and dedication of all parties.”

The Hunton & Williams team was led by Fernando C. Alonso and Fernando Margarit, in Miami, and David R. Yates, in Atlanta, and included Miami lawyers Carlos Garcia (as to financing only), Stefano D’Aniello, Rail Seoane and B. Cary Tolley III; Mark A. Melton in Dallas; and Eric J. Hanson in Atlanta.

Deutsche Bank Securities Inc. was Promerica’s exclusive financial investment adviser. Skadden, Arps, Slate, Meagher & Flom LLP was Citi’s outside counsel on the deal.