CMS Carey & Allende provided legal advice to Sun International Chile, in its role as borrower, and to Sun Latam SpA, which intervened as joint guarantor and co-debtor. For its part, Banco BCI served as agent and guarantor bank and was assisted by Larraín, Rencoret & Urzúa.
"The disbursement of the loan was made on the same day as the signing of the credit agreement on November 6, with the purpose of financing a capital contribution in Sun Dreams S.A. associated with a price adjustment committed on the occasion of the merger between Novosun S.A. and Dreams S.A., agreed in 2016," explained CMS Carey & Allende.
Novosun and Dreams competed in the segment of casinos and gambling halls. With the merger, Sun increased its offer in Chile and Peru, where the absorbed company had two casinos and two gambling halls. After the transaction, Sun International acquired the majority shareholding of the resulting company, which is called Sun Dreams, which will now receive a capital increase.
CMS Carey added that there was a current loan between Sun International Chile SpA and creditor banks other than this financing. For this reason, "it was necessary to amend the current financing, in particular the rules regarding prepayment, as well as modify and postpone some of the existing guarantees under the same."
Sun International controls the Monticello Grand Casino in Chile and the Ocean Sun Casino in Panama.
Sun took a definitive step in its expansion process by merging with the leading casino and entertainment company in the gaming and entertainment industry in Chile, Dreams, which makes it the largest gaming company in Latin America, with operations in Chile, Peru, Colombia and Panama.
Source: GMB /Lexlatin
