Novelis’ ABL Credit Agreement

Skadden, Arps, Slate, Meagher & Flom LLP acted as direct counsel and legal advisors to Wells Fargo.

Novelis is a US-headquartered business that operates an integrated network of aluminium rolling and recycling facilities throughout the Americas, Europe and Asia. Its worldwide production and recycling capability is leveraged to produce reputable and higher-top quality products around the world. Novelis has outlined options to broaden the use of light-weight and indefinitely recyclable aluminium to help its customers to attain their sustainability ambitions by way of the provision of environmentally friendly products.

Jaime A. Treviño, JATA – J.A. Treviño Abogados

Remember to give us some track record into this procedure and your team’s function within just it.

As aspect of the world funding composition, we had been originally approached by Wells Fargo and Skadden Arps with the desire in partially securing the funding through the proceeds of substantial sales carried out by Novelis in Mexico. The primary assets to be secured were being intangibles, which in itself involved a problem to the classic Mexican security structures, most commonly involving genuine assets, fairness, or other sorts of specific intangibles.

Our group of attorneys, led by my lover Veronica Cantu and myself, collectively with our senior affiliate Tracy Delgadillo, came throughout an progressive construction that settled the lenders’ protection and assurance needs, although also gratifying Novelis’ professional and operational demands in this transaction.

Our Mexican legal perform follows the direct of a good staff at Skadden Arps. Skadden trusts JATA in major and advanced cross-border funding transactions. I have personally labored with Skadden Arps in different roles for over 30 years, and our team’s knowledge with transactions of this character makes it possible for us to remain constantly on major of the curve and advise on advanced lawful perform.  Similarly, our illustration of a quantity of mayor worldwide banking institutions, this kind of as Wells Fargo, for many years, in the Mexican portions of complex worldwide financing transactions gives us with important qualifications to supplier alternate options and solutions acceptable for typically any circumstance.

What are the key factors to hold in mind when advising on the institution of a credit arrangement, particularly with bigger client organisations?

For us, it is always about discovering a tailor-produced construction that is effective with the character of the funding, the nature of the organization and its Mexican and world-wide operations. Main multi-national financings, this kind of as the Wells Fargo/Novelis transaction, have to have innovative expertise on the organization and financial elements of the transaction, and a pretty powerful legal basis to create and document structures that usually take hand of solutions that are not normally ’off the rack’.

How did your workforce utilise their expertise and working experience to guarantee the operation’s successful completion?

When the transaction was originally proposed to us, the property to be secured involved a number of lawful troubles from a conventional security structure viewpoint in Mexico. The appreciable expertise of our team in world wide funding matters (which include our expertise representing Wells Fargo in a significant quantity of earlier transactions), and our ongoing exertion to consider exterior the box and innovate, played a vital purpose in developing the framework on day a person. The implementation of the safety framework has developed with the financing and refinancing efforts in between the get-togethers, and we are quite very pleased to be element of this intricate transaction and signify Wells Fargo in the Mexican requires included in the Novelis’ funding and in and other financing matters with a Mexican element.