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PRICESMART GROUP


Deal name:
Loans granted by Bank of Nova Scotia (and affiliate) to PriceSmart Group Companies in El Salvador and Panama.

Date completed:
September, 2009


Brief description of the deal:

Bank of Nova Scotia and Scotiabank El Salvador, S.A. granted loans to PriceSmart El Salvador, S.A. de C.V., Inmobiliaria PriceSmart, S.A. de C.V., and PriceSmart Panama, S.A., for a total amount of US$18,000,000.00, which were cross-guaranteed by the borrowers in each jurisdiction, and by PriceSmart Honduras, S.A. de C.V. The loans were granted for the refinancing of existing intercompany debt of PriceSmart Group Companies.

Brief description of why the deal is innovative:
 
The deal required a coordinate effort in three jurisdictions (El Salvador, Panamá and Honduras), with respect to the issuance of the cross-guarantees by the Borrowers and PriceSmart Honduras, S.A. de C.V., and the granting of collateral (mortgages on real estate) in each jurisdiction.