Foreign property investor, through a special-purpose Spanish company, of a portfolio of commercial assets located throughout the country has interest in financing the acquisition of the portfolio, to be carried out through its own finances (without external financing) at a time of credit restriction for the acquisition of property assets. The portfolio is the subject of a lease contract, which in the long-term constitutes the main source of revenue for the company. An operation with an international dimension in which it is tied to the necessity of being in debt in order to reduce its benefits through the establishment of the debt service. The special-purpose company needs a shareholder guarantee to assure themselves of the granting of finance by the bank.
Advice in both corporate and financial aspects in order to join together the financing to the special-purpose company. Due to the circumstances wherein foreign companies were shareholders as well as banks, it was necessary to provide intensive advice in order to structure the operation to analyse the tax and regulatory implications. Coordination with the different sections involved in the operation, among others, foreign legal advisors from the bank as well as from the shareholder. Review and negotiation of the different documents related to the financing (loan contract, guarantee of the vehicle company shares, guarantee of the long-term lease contract of the portfolio of commercial assets, guarantee of the vehicle company accounts, etc.).
The financing of the acquisition of the portfolio was completed and the special-purpose company was able to raise a total of 260 million Euros of bank finance. Size of the Operation: 260 million Euros.