Clifford Chance

Clifford Chance advises Colombia-based Credivalores-Crediservicios on capitalization transaction involving new strategic partner GDA Luma

International law firm Clifford Chance advised Credivalores-Crediservicios S.A. (Credivalores) in connection with a capitalization transaction involving private equity fund GDA Luma, which included the negotiation and execution of (i) an exchange agreement, pursuant to which Credivalores issued new shares to GDA Luma in exchange for a portion of Credivalores' 8.875% Senior Notes due in 2025 held by GDA Luma that were subsequently cancelled, and (ii) an amendment to the company's shareholders' agreement.

Credivalores is a non-bank financial institution in Colombia in payroll and consumer loans mostly serving the low and middle-income class of the country's population. With this investment, GDA Luma will become the strategic partner of Credivalores, enabling it to strengthen its position as a key originator of consumer loans in Colombia.

The Clifford Chance team comprised partner Hugo Triaca, associates Alan Sakar Azuara and Mark Sheehy, foreign law clerk Adriana Cabal Gutierrez and law clerk Maria Fernanda Gadea Rivera.

Clifford Chance advises on many transactions in Colombia, including Credivalores-Crediservicios on a US$100 million collateralized credit facility.