Conyers has advised long-standing client Despegar (NYSE: DESP), the leading online travel company in Latin America, on two separate preferred share financings, raising aggregate proceeds of US$200 million. Despegar will issue L Catterton (the largest consumer-focused private equity firm in the world) non-convertible series A preferred shares plus warrants to purchase ordinary shares for an aggregate purchase price of US$150 million. In a separate transaction, Despegar will also issue and sell to Waha Capital (an Abu Dhabi listed investment company) series B preferred shares convertible into ordinary shares for an aggregate purchase price of US$50 million. The transactions augment Despegar’s liquidity levels during a time of unprecedented business conditions facing the travel industry.
Concurrently with the closing of the preferred share financings, Conyers also advised Despeger on its acquisition of an 84% equity stake in Koin, a Brazilian online payment platform, through the capitalization of Despegar’s receivables. The acquisition expands Despegar’s technological platform by enhancing financings options for customers in Brazil. As part of the acquisition, Despegar also has a call option to purchase the remaining stake in Koin and minority shareholders have a put option to sell their stake.
The Conyers team in BVI, which worked alongside Simpson Thacher & Bartlett LLP, Despegar’s US legal advisors, was made up of Anton Goldstein, Nicholas Kuria and Rachael Pape. Citigroup and Morgan Stanley acted as financial advisors to Despegar. The Conyers team in Cayman, made up of Nicholas Pattman and Rory O’Connor, advised on the Koin acquisition, working alongside TozziniFreire Advogados in Brazil and Simpson Thacher & Bartlett LLP in the US.