October 2008

First Dominican LBO lands financing

The financing deal for US-based private equity firm Advent's acquisition of Aerodom, which operates airports in the Dominican Republic, has closed.

Taking legal advice from Mayer Brown LLP in the US and Oficina Melo Guerrero in the Dominican Republic, the Bank of Nova Scotia led a syndicate providing US$350 million to the fund, which was advised in the US by Weil, Gotshal & Manges LLP and by Pellerano & Herrera in the Dominican Republic.

Mayer Brown partner Douglas Doetsch says, "As the first LBO acquisition in the Dominican Republic and the largest Caribbean infrastructure financing in recent years, Advent's purchase of Aerodom (and the financing of the purchase led by Scotiabank), marked an important step in the development of the Caribbean infrastructure market." "The fact that Scotiabank was able to complete the transaction successfully in the tough market conditions of mid-2008 speaks of their strong position in the Caribbean financing markets," he adds.

Luis Pellerano of Pellerano & Herrera says, "The acquisition of Aerodom was particularly complex given the nature of the business and the governmental approvals involved." He adds, "The layer of the acquisition financing brought additional complexities to the deal, since it required us to meticulously line up and mix the financing together with the acquisition."

Advent agreed to acquire Aeropuertos Dominicanos Siglo XXI in September 2007, its thirteenth deal in the airport sector. Aerodom was advised in the sale by Simpson Thacher & Bartlett LLP in New York and Mejía-Armenteros & Abreu in the Dominican Republic.Aerodom holds a 30-year concession contract with the Dominican government and its airport commission to develop, operate and manage six airports, including Las Américas, the country's principal international gateway.

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