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NHG in Nueva Elektra del Milenio international capital markets debut issue USD$500 million.
NHG and Winston & Strawn advised Nueva Elektra del Milenio, a subsidiary of Grupo Elektra, and Grupo Elektra as payment guarantor, in connection with the creation of a cross-border remittances securitization program and its first USD-denominated 144A / Reg S Senior Notes offering for USD $500 million. The notes are listed in the Luxembourg Stock Exchange. Default payments and additional amounts under the notes are guaranteed by Grupo Elektra.
The transaction represents Nueva Elektra’s first public offering in the international markets and required a complex multi-jurisdiction structure that will allow Nueva Elektra to securitize future cash flows derived from its money remittance regulated business. The notes were rated investment grade and their offering was oversubscribed by investors.
This is the first securitization of its type by a Mexican company in more than 20 years. The transaction is the company’s first international securities offering and required a complex multi-jurisdiction legal and tax structure for the securitization of future cash flows derived from Nueva Elektra’s regulated money remittance business. Remittances flows are very relevant for the Mexican economy, representing 3% of Mexico’s GDP as of 2019.
Counsel to Elektra
Winston & Strawn
Partners Allen Miller, Claude Serfilippi, Talbert Navia and Sey-Hyo Lee and associates Delfina Nicholson, Adrian Mendez Sevilla, Paula Villalobos Valenzuela and Ana Núñez Cárdenas in New York; partner Pam Davis in San Francisco
Partners Romain Sabatier and Josée Weydert and associate Thibaud Muller in Luxembourg
Counsel to BCP Securities, Jefferies and Credit Suisse Securities
Mayer Brown LLP
Partners Douglas Doestsch, Juan Pablo Moreno and Gabriela Sakamoto, counsel Daniel Whitmore and associate Jessica Solis in New York; and partner Ariel Ramos, counsel Jan Broker and associate Javier Garibay in Mexico City
Partner Arnaud Arrecgros and associate Maurice Honnen in Luxembourg