A number of highly creative deals coming out of the Caribbean have had one things in common: Paul Hastings.
The global law firm has been active in the region for years, advising companies and governments alike. Says Alex Herman, a partner in the securities & capital markets and Latin America practices: “This past year has been the culmination of many efforts by different teams at the firm to push the region, focus on the region and get creative in the region.”
Paul Hastings, which wins Law Firm of the Year for the Caribbean, was involved in two strategic deals in Jamaica, including the sovereign’s inaugural issuance of Jamaican dollar-linked bonds in the international market for the equivalent of $300 million in 2023 and the $480-million bond and securitization of revenue for the Kingston airport in 2024.
Herman says the airport deal, the largest transportation infrastructure bond in Jamaica’s history, appropriately showcased the firm’s work.
“The King Air transaction was done in a very expedited timeframe and with a completely novel process for this kind of a structure,” she says. “We did not rely on the milestone payments, which are typical of these kinds of securitizations, but a hybrid approach purely using the airport’s revenue streams.”
In another airport transaction, this time in the Dominican Republic, the firm took part in a complex financing for Aeropuertos Dominicanos Siglo XXI (Aerodom), the country’s largest airport operator. The $940 million transaction involved a $500 million bond and $440 million credit facility.
Herman says Paul Hastings has been working in the country for a long time and it was gratifying to work on this refinancing “as the Dominican Republic becomes such a powerhouse in the region.”
The largest deal was a $4.4 billion debt restructuring for the Digicel Groups, which has assets across the Caribbean and Central America.
“A restructuring deal pulls from every corner of a law firm, so this was shining moment for us. We always had a broad bench, but now we have an unheard of bench,” she said.
While the firm works on huge deals, Herman said transactions in smaller jurisdictions may not be marquee projects, but they are often complex and creative.
“If small island nations goes to the market and are able to get a lower interest rate than they have gotten before and if they upsize, even if by $25 million, it is huge them and a validation of our work,” she says.
Herman says more people are paying more attention to Caribbean countries and companies working in these countries and this is going to continue, particularly with Guyana and Suriname as ascendent oil and gas producers.
“Things are simmering, but they are about to take off,” she says. “I think the Caribbean is a powerhouse that has been building unnoticed for a while and we want to continue focusing our efforts there.”