"How One Mine Got a $1.05 Billion Loan Amid the Global Financial Crisis"

The Wall Street Journal Deal Blog - July 22, 2009

Sullivan & Cromwell LLP Partner Sergio Galvis was featured in a Wall Street Journal Deal Blog interview about his role in Antofagasta's financing of Minera Esperanza. The article notes that this deal was one of the only financing deals to close in this challenging economic climate. The article reported that the Esperanza copper project in Chile obtained a $1.05 billion project financing loan from commercial banks and government export credit agencies. Mr. Galvis, who advised the project on the deal, noted that, "one of the reasons this deal got done was that the decision was made very early on that, rather than being reactive, the legal and financial teams would work closely with the sponsors to develop a financing plan that would be acceptable to market. We actually drafted the papers in advance. It's quite extraordinary. We drafted a 60-plus page detailed term sheet, which was sent out in order to select prospective lenders. The project was then able to say to the lenders, 'We think we fit the market right on these terms, are you willing to participate under these terms?'"