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Shareholders of RASSINI Secure $485M Syndicated Financing for LBO

December 20, 2018
New York - Paul Hastings, a leading global law firm, announced today that the firm represented Mexican company GGI INV SPV, S.A.P.I. de C.V., as special purpose borrower, in a $485 million senior secured loan from a consortium of banks. The loan was lead-managed by BBVA BANCOMER with approximately 10 international banks in the syndicate.

The borrower was created as a special purpose vehicle by management and the controlling shareholders of RASSINI, S.A.B. de C.V. (RASSINI), a Mexican company that is the largest producer of suspension components for light commercial vehicles in the world and the only vertically integrated producer of brake discs in America. The proceeds were used primarily to acquire a majority of the publicly held shares of RASSINI through a tender offer process on the Mexican stock exchange, as well as to repay certain existing debt of RASSINI’s subsidiaries.  RASSINI and certain of its subsidiaries guaranteed the loan and pledged certain assets to secure the loan, including real property.  This transaction represents a rare example of a management lead leveraged buyout in Mexico, using a dollar-denominated syndicated loan as financing.

Latin America practice partners Mike Fitzgerald and Joy Gallup led the Paul Hastings team, which also included partner Andrew Short, of counsel Pedro Reyes, associate Matthew Tippet and foreign associate Emilio Minon.

At Paul Hastings, our purpose is clear—to help our clients and people navigate new paths to growth. With a strong presence throughout Asia, Europe, Latin America, and the U.S., Paul Hastings is recognized as one of the world’s most innovative global law firms.