Hogan Lovells advises on US$1.5 billion cross-border structured finance transaction with Nissan’s financial services subsidiary in Mexico
New York, Mexico City, Monterrey – Global law firm Hogan Lovells advised J.P. Morgan (NYSE: JPM) on a US$1.5 billion cross-border structured finance transaction governed by both New York and Mexican law, opposite Nissan’s financial services subsidiary in Mexico (NR Finance México, S.A. de C.V. or “NRFM”).
The transaction comprised two senior revolving credit facilities: a committed facility of US$1 billion and an uncommitted facility of US$500 million, extended to a Mexican trust serving as a special purpose vehicle. These facilities involve Mexican peso-denominated receivables arising from auto loans originated by NRFM and transferred to the trust through factoring agreements. The structure also incorporated a cross-currency swap given the underlying auto loans are denominated in pesos and the facilities are denominated in U.S. dollars.
The cross-practice deal team was led by partners Matthew Edward Schernecke (Banking and Loan Finance, New York) and René Arce Lozano (IERP, Monterrey, Mexico City) with support from partner Edward So (Capital Markets, New York), counsel Ana Catalina Decanini (IERP, Monterrey) and Stevan Nicholas (Banking and Loan Finance, New York). Additional support was provided by Brooke Shekhar (Banking and Loan Finance, Washington, D.C.), senior associate David Esquivel (Tax, Pensions & Benefits, Monterrey), and associates Regina De Lira, Sofía Treviño, and Ulises Barrientos (all IERP, Monterrey).
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