Mainstream Renewable Power concludes reorganization process in Chile

Chicago, Nov. 14 – Mainstream Renewable Power concluded a reorganization process in Chile, according to a press release.

Under the reorganization, terms for $1 billion of project senior debt were renegotiated.

Judicial reorganization proceedings were initiated by Mainstream in July 2023 to restructure the assets and the capital structure, to renegotiate the financial debts and to allow for an injection of new capital into Huemul Energia SpA and Condor Energia SpA, part of the company’s 1.4 GW Andes Renovables wind and solar platform.

The reorganization plan includes a deferral period for interest until the third quarter of 2026 and a deferral of principal payments until 2027 for Condor and 2029 for Huemul, in addition to other concessions.

Mainstream has committed to inject $145 million into the companies through a payment-in-kind interest-bearing debt instrument which matures in 2035, on a junior basis to the project finance debt, but senior to the mezzanine debt.

In agreement with lenders, about $150 million of proceeds from interest swap termination will be available to Mainstream to repay project-level debt and provide liquidity for Condor and Huemul.

The existing mezzanine debt related to Condor and Huemul has been restructured and will earn PIK interest and mature in 2035. The existing mezzanine debt related to Copihue (148 MW) will remain with the terms also renegotiated to apply PIK interest and mature in 2035. As part of the negotiations, funds managed by affiliates of Ares Management, the mezzanine lenders, will hold a minority equity interest in the Andes Renovables platform, while Mainstream retains majority ownership.

The injection of new capital into the companies will be facilitated through a new guarantee and cash facility of up to $220 million from DNB, subject to certain conditions. The facility is backed by Mainstream shareholders and will serve various purposes, including to fulfil Mainstream’s obligations connected to the restructuring in Chile. Mainstream shareholders have expressed their full support to Mainstream and the reorganization.

PJT Partners LP acted as restructuring advisers to Mainstream.

Mainstream Renewable Power is a pure-play renewable energy company, with wind and solar assets across global markets, including in Europe, Latin America, Africa, and Asia-Pacific.

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