Thacher Proffitt Completed Trump Ocean Club Bond Offering

Wednesday, November 21 2007 @ 02:22 PM UTC

Contributed by: Don Winner

NEW YORK, Nov. 20 /PRNewswire/ -- Thacher Proffitt & Wood LLP announced today that the Firm acted as underwriter's counsel on a $220 million senior secured note offering for Newland International Properties, Inc., the company that owns and is developing the Trump Ocean Club International Hotel and Tower in Panama City, Panama. Bear, Stearns & Co. Inc. acted as sole underwriter of the deal, which was placed in the U.S. institutional and international markets. The bond proceeds will be used to finance construction of the project, and the collateral consists of real property, cash accounts and the receivables generated by sales of units in the project. (more)

Editor's Comment: To tie this article into the earlier article from today about the $40 billion dollar oil pipeline project - this one building represents a foreign direct investment of more than $220 million dollars. Of course once it is build and sold then some of the the profits from the project will remain in Panama as well. As far as I know this is the first time there has been an international bond offering to raise capital to build a building in Panama.

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The deal, which closed yesterday, was the second successfully executed construction bond financing in Latin America after the watershed offering for Cap Cana, S.A. last year which won several awards including "Best Asset-backed Bond" for 2006 from Latin Finance. Thacher Proffitt acted as underwriter's counsel for Bear Stearns on that deal as well.

Marc Rossell, the partner who led Thacher Proffitt's team on both transactions, commented: "This deal was not only another successful offering of this type of security, but the trade was executed in a very turbulent debt market and was among the very few emerging markets deals that actually priced and closed in this period. Besides the normal complexities of these construction bond financings, the fact that the offering was registered in Panama and the trade was required to be crossed over the Panama stock exchange made execution of the deal unusually challenging."

Thacher Proffitt also acted as counsel to HSBC Bank USA, N.A., as indenture trustee, and HSBC Investment Corporation (Panama), S.A. as co- trustee.

-- Thacher Proffitt Attorneys: Marc Rossell, Christopher Lewis, Nilo Barredo, Rosemary Spaziani

-- Thacher Proffitt Attorneys (HSBC Team): Charles Dietzgen, David Natter, Ilana Chalfin

-- US counsel to Newland: Gibson, Dunn & Crutcher - Kevin Kelley, Bernardo Coindreau, Carlos Cruz-Abrams

-- Panamanian Counsel to Newland: Sucre Arias & Reyes - Ernesto Eduardo Arias, Nadiuska Lopez Abood

-- Panamanian Counsel to Bear Stearns: Arias Fabrega & Fabrega - Ricardo Arango, Rodrigo Cardoze

About Thacher Proffitt & Wood LLP

A 159-year-old law firm that focuses on the capital markets and financial services industries, Thacher Proffitt advises domestic and global clients in a wide range of areas, including corporate and financial institutions law, securities, structured finance, international trade matters, investment funds, swaps and derivatives, cross-border transactions, real estate, commercial lending, insurance, admiralty and ship finance, litigation and dispute resolution, technology and intellectual property, executive compensation and employee benefits, taxation, trusts and estates, bankruptcy, reorganizations and restructurings. The Firm has over 300 lawyers with five offices located in New York, NY, Washington, DC, White Plains, NY, Summit, NJ and Mexico City, Mexico. The Firm was named "Best Legal Advisor for North America" by Global Finance magazine, and was ranked #1 for "Top 10 Growth Leaders" by The National Law Journal. It was named top issuers' counsel and #1 for securitizations (Thomson Financial, year-end 2006 rankings), and #1 in asset- backed securities for both issuer's and underwriter's counsel by The New York Law Journal.

Thacher Proffitt is on the Web at www.tpw.com.

Website: http://www.tpw.com//

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