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3 January, 2019 Colombia

Colombian pharma group gets unsecured loan

Brigard Urrutia in Bogotá and Arias (El Salvador) have helped a consortium of banks provide a US$100 million loan to pharmaceuticals maker Procaps for refinancing purposes.

Philippi Prietocarrizosa Ferrero DU & Uría (Colombia) advised Procaps.

Bancolombia and its Panamanian subsidiary along with Colombia’s Davivienda, Peru’s largest bank Banco de Crédito del Perú, and Spain’s Banco de Sabadell provided the loan in the deal closed on 28 November.

The unsecured financing was backed by the Colombian and Salvadorean notes guaranteed by Procaps’ subsidiaries. The loan was disbursed only to Procaps, but 17 of its subsidiaries signed as co-debtors and guarantors.

Unsecured loans are supported only by the borrower’s creditworthiness, rather than by collateral. Borrowers usually need higher ratings to get this sort of financing.

Counsel to Procaps: Philippi Prietocarrizosa Ferrero DU & Uría (Colombia) – Partner Juan Fernando Gaviria and associate Ana María Ramírez in Bogotá

Counsel to Bancolombia, Bancolombia Sucursal Panamá, Davivienda, Banco de Crédito del Perú and Banco de Sabadell: Brigard Urrutia – Partner Manuel Fernando Quinche and associates Natalia Arango and Alberto Vergara in Bogotá

Arias (El Salvador): Associate Mariana Nochez in San Salvador

Source: Latin Lawyer

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