Orazul Energy Announces Closing of $550 Million Bond Offering

USA - English

• Latin America - español

NEW YORK, May 2, 2017 /PRNewswire/ -- Orazul Energy Egenor S. en C. por A. ("the Company" or "Orazul Peru"), a Lima, Peru-based subsidiary of Orazul Energy and a portfolio company of I Squared Capital (or "I Squared"), today announced the closing of its $550 million offering of 5.625% 10-year bonds due in 2027 ("the bonds"), payable semiannually.

The Company intends to use the net proceeds from the offering to refinance an existing acquisition loan facility and existing debt at the Company level. These proceeds will ultimately streamline and simplify the Company's current capital structure, enabling the management team to better execute its corporate strategy. 

The bonds (144A/Reg S format) received a BB rating with a stable outlook from both S&P and Fitch, generated strong investor interest, and were heavily oversubscribed.

"With this refinancing, Orazul Peru is even better positioned to expand the energy matrix in the country," said Raul E. Espinoza, President of Orazul Peru. "We are the only integrated power generator with gas production in Peru and a diversified portfolio of assets, including hydro and thermal generation of more than 550 megawatts of capacity, 740 kilometers of electricity transmission lines, as well as natural gas production and processing facilities."

The offering was led by I Squared Capital in close partnership with the Orazul Energy portfolio management team, as well as the Orazul Peru executive leadership team.  

Deutsche Bank and Credicorp Capital acted as Global Coordinators and Joint Bookrunners. Citi, Morgan Stanley, and Scotiabank acted as Joint Bookrunners.

Milbank Tweed Hadley & Mc Cloy acted on behalf of the Company while Gibson, Dunn & Crutcher acted on behalf of the Global Coordinators and Joint Bookrunners.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Orazul Energy 
An energy business with thermal, hydroelectric, transmission lines and natural gas facilities, Orazul Energy is headquartered in Houston, Texas and has operations throughout Latin America, including Peru.

About I Squared Capital 
I Squared Capital is an independent global infrastructure investment manager focusing on energy, utilities, and transport in the Americas, Europe, and select high growth economies. The Firm has offices in New York, Houston, London, New Delhi, Hong Kong, and Singapore. 

Media Relations Contact:
Arielle Patrick, Orazul Energy                
+1 (212) 445-8470                        
[email protected]                  

Investor Relations Contact:
Andreas Moon, I Squared Capital
+1 (212) 339-5339
[email protected]  

SOURCE I Squared Capital