RASSINI, S.A.P.I. de C.V. Obtains $470 Million in Senior Secured Loan

March 13, 2020

New York – Paul Hastings, a leading global law firm, announced today that the firm represented Mexican company RASSINI, S.A.P.I. de C.V., as borrower, in a $470 million senior secured loan from a consortium of banks. The loan was lead-managed by BBVA BANCOMER with approximately 10 other international banks in the syndicate.

The borrower is 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 borrower was formerly a special purpose vehicle created by management and the controlling shareholders of RASSINI, S.A.B. de C.V. (RASSINI), to acquire the publicly held shares of RASSINI, in a rare example of a management lead leveraged buyout in Mexico, in which a dollar-denominated syndicated loan was used as financing. Following the acquisition, RASSINI was delisted from the Mexican stock exchange and converted into a limited liability company, and merged into the special purpose vehicle. The proceeds of this senior secured loan were used to repay the acquisition financing and to finance working capital and capital expenditures and for other general corporate purposes. Certain of the borrower’s subsidiaries guaranteed the loan and pledged certain assets to secure the loan, including real property.
Latin America practice partners Mike Fitzgerald and Joy Gallup led the Paul Hastings team, which also included associate Eduardo Gonzalez and foreign associate Eduardo Menezes.

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