Marval participates in the issuance of Aluar Aluminio Argentino Secured Notes for USD 100M

Aluar Aluminio Argentino SAIC is a company with domestic capital, managed in accordance with the most demanding international industry standards and in constant evolution. Owing to a continuous investment plan, its current aluminum production capacity is 460,000 tons per year, enabling it to fully supply the domestic market and export 70% of its production to various markets, including NAFTA countries, Latin America, and Asia.

On March 21, 2024, Aluar issued hard-dollar fixed-rate notes with a nominal annual rate of 6.25%, maturing on March 21, 2027, integrated and payable in USD abroad, for an aggregate amount of USD 100,000,000 (Series 8 Notes).

The payment of the Series 8 Notes will be guaranteed through:

1. a first-ranking real guarantee (pledge) on all of Aluar’s receivables under aluminum export contracts with certain customers to Citibank NA, acting as the security agent,
2. a first-ranking real guarantee (pledge) on all funds deposited in the collection account assigned to the guarantee in line with the provisions of Communication "A" 7770 (as amended) of the Argentine Central Bank, and in accordance with the provisions of the guarantee agreement entered into between Aluar, Citibank NA, as Security Agent; the bank holding the collection account, and TMF Trust Company (Argentina) SA, as the representative of the bondholders. This agreement is governed by the laws of the State of New York, United States of America.

The Series 8 Note are listed and traded on Bolsas y Mercados Argentinos SA and Mercado Abierto Electrónico SA, respectively.

These Notes feature a novel and unique structure not only due to the foreign law-governed guarantee but also because of the foreign law applicable to the obligation and their place of payment.

The placement of the Series 8 Notes was managed by SBS Trading SA and Banco Santander Argentina SA, as arrangers and placement agents; and by Balanz Capital Valores SAU, Nación Bursátil SA, Banco de la Provincia de Buenos Aires, Banco Comafi SA, Macro Securities SAU, Banco Patagonia SA, Alchemy Valores SA, and Industrial Valores SA, as placement agents. TMF Trust Company Argentina SA will also act as representative of the holders of the Series 8 Notes.

Bomchil acted as the legal advisor to Aluar through a team led by partner Maria Victoria Funes, together with associates Luciano Zanutto and Yazmin Sophie Tek.

Marval O’Farrell Mairal acted as external legal advisor to the Placement Agents, through a team led by partners Gabriel G. Matarasso and Sergio Talamo, together with associates Lautaro Penza and Sebastian Swinnen; and as external legal advisor to the Bondholders’ Representative, through associate Martín I. Lanus.

Linklaters LLP served as legal advisor to the Security Agent through a team led by partners Michael Bassett and Conrado Tenaglia, together with associates Juan Mata, Ramón Augusto Poliche, and Mario Lercari.

Alston & Bird acted as legal advisor to Security Agents Brad Johnson and Christina Garrett.

Marval.com