Procaps Group receives $130 million investment and restructures debt

Cuatrecasas has advised Banco BTG Pactual Colombia S.A., Banco BTG Pactual S.A. (Cayman Branch), Bancolombia S.A. and Banco Davivienda S.A. on restructuring three credit facilities granted under Colombian law to Procaps S.A. and its parent company in Luxembourg, the Procaps Group, in a new business chapter for the pharmaceutical company.

This debt restructuring, which involved extending the due dates and modifying payment terms, was part of an integral process whereby the company reorganized its regional operations and refinanced approximately $209 million in debt. La transaction also included structuring and formalizing the guarantee package granted to all the creditors in the same category, with guarantees under the laws of Colombia, Peru and Spain, and involved many jurisdictions, including Brazil, Colombia, El Salvador, Luxembourg, New York, and Spain.

For the funders, the restructuring provided a key opportunity to maximize their credit recovery, as the transaction took place at a decisive time for the company, which also concluded a $130 million capital injection. This comprised a $90 million private investment in ordinary shares and a $40 million convertible bond issue.

Cuatrecasas Finance partner Juan Carlos Puentes stated, "We are proud to have advised Banco BTG Pactual Colombia, Banco BTG Pactual (Cayman Branch), Bancolombia, and Banco Davivienda on the Procaps debt restructuring. This process not only enabled approximately $209 million to be refinanced, but also strengthened the company’s financial and operating position. The restructuring and $130 million capital injection have been crucial to restoring financial health for Procaps and ensuring its long-term growth in Latin America. This success reflects the commitment and collaboration of the parties involved.”

The Cuatrecasas advisory team was led by Juan Carlos Puentes, from the Bogotá office, with the participation of Natalia Villamizar, Verónica Hernández, Juanita Calderón, Lorenzo Lizarralde, Luisa Múnera and Luisa Penagos. In addition, Carlos Lasarte de Launet and Kiomi Osorio led the legal advice on Spanish and Peruvian law respectively, with the support of Guillermo Castellanos, Miguel Ángel Gonzalo, Luis Olazábal and Alejandro Zorrilla.