Following Ministry of Tourism authorization for the construction of up to 22-floor high rises in Cap Cana, the luxury resort developer announced last week completing the restructuring of its international debt for US$364 million.
On 28 September 2017, the law firm Mayer Brown that represented Cap Cana had highlighted the innovativeness of the successful exchange of two series of senior secured notes for a single series of notes issued by a newly created Cayman special-purpose vehicle for US$350 million.
In September, Mayer Brown explained that Cap Cana transferred a number of undeveloped properties to the new issuer, that plans to market and sell the properties to support its payment obligations under the newly issued notes. Cap Cana worked with a steering committee of existing note holders to foreclose on its valuable collateral properties under the existing notes and regain control of those properties (free of liens) at the conclusion of the tender process.
The Mayer Brown team was led by New York-based Banking & Finance partner George Miller and included: Corporate & Securities partner Michael Hermsen and associate Catherine Henderson (both Chicago); and Banking & Finance associates Sean Kulkarni (New York) and Christine Taverner (Charlotte).
Also participating in the deal were Pellerano & Herrera and the international counsel of Greenberg Traurig. With this deal, the company completed the restructuring of its 10% Senior Secured Notes and 10% Senior Secured Recovery Notes, both due 2016. The debt restructuring is part of the wider reorganization and re-launch of Cap Cana.
In follow up actions, Cap Cana reported on Monday, 15 January 2018, that further restructuring efforts were completed to allow for the relaunching of new developments at the project. Greylock Capital served as co-chair of the steering committee for the restructuring of Cap Cana S.A. in the Dominican Republic. Others that participated in the restructuring were AJ Mediratta, iam Localio for Greylock Capital and Fred Sykes, for NWI Management.
Cap Cana executives Fernando Hazoury and Jorge Subero lead the negotiations.
Read more in Spanish:
Mayer Brown
El Caribe
DR1 Forums
18 January 2018
