Credivalores – Crediservicios S.A., the leading non-bank financial institution in Colombia in payroll and consumer loans, announced it has closed a new US$100 million term-loan, which will be completely used to serve the dollar bond amortization due in July. The resources raised through this committed term-loan facility are in addition to the COP$428 billion (US$104 million) new funding secured through term-loans, which were announced at the end of January 2022 by the company. The closing of this US$100 million term-loan completes the total cash flow needs of Credivalores for 2022.
The credit line is secured by credit card receivables issued to under-banked segments of the population in Colombia originated through retailers, mobile phone carriers, insurance companies, distributors, and other third-party service providers. The deal is secured by an innovative collateral structure involving a special purpose vehicle in Colombia (Fideicomiso de Garantía) under a true sale receivable structure entailing the transfer of rights from an existing collection master trust with Credivalores as guarantor. The deal also involves the pledging of swap and call derivative transactions to hedge currency fluctuations.
Latham & Watkins LLP represented the lenders in the transaction with a deal team led by partners Gianluca Bacchiocchi, Guido Liniado, and Matthew Henegar, with associate Pedro Felipe Eraso. Advice was also provided on tax matters by partner Elena Romanova with associate Claire Park, and on compliance matters by counsel Timothy McCarten.