- Liability Management Transactions - Given the current economic environment, we will continue to see a significant amount of liability management transactions for companies with outstanding public debt, particularly those where liquidity has been adversely impacted by the pandemic. This will include consent solicitations, tender offers and exchange offers, among others, and may be accompanied by equity raises such as rights offerings and private equity infusion in some cases.
- More Special Purpose Acquisition Companies (SPACs) in Latin America – The recent trend of SPACs in the U.S. market will migrate further south in Latin America as sponsors develop a better understanding of the product and the opportunities for going public in a non-traditional way. Although there have been a handful of SPACs done with focus on Latin America, more are on the way.
- Increase of Venture Capital Investments into the U.S. – Political unrest and economic uncertainty in certain Latin American countries, when combined with the accelerated search for new technologies and updated business models triggered by the pandemic, will continue to generate an influx of venture capital investments into the U.S., where considerations such as investor objectives; legal protections in connection with the use of different investment instruments; and regulatory scrutiny under CFIUS (Committee on Foreign Investment in the US), will play a decisive role.
- Compliance, Anti-Corruption and White-Collar Crime – As a result of the pandemic, government agencies and companies will increasingly be concerned about ethics issues. Compliance and anti-corruption initiatives should be on organizations' top of mind.
- Expansion of Economic Activity in Brazil – Local M&A and debt market will have a strong comeback. IPOs by Brazilian companies listed in Brazil with placement efforts in the U.S. and abroad as well as registered IPOs by Brazilian companies with holding structures in the U.S. or abroad, listed directly on the NYSE or NASDAQ (usually in the technology sector), will be on top of investors’ priorities.
About the Authors
Greenberg Traurig’s award-winning Latin America Practice draws on resources from our offices around the world, bringing together a multidisciplinary team of more than 120 lawyers to help clients identify and capitalize on business opportunities in Latin America, the Iberian Peninsula, and the Caribbean. As the only global law firm founded in Miami, Greenberg Traurig is inextricably linked to Latin America. Since its beginning, GT has represented many of the family enterprises that are today among Latin America’s largest companies. By addressing real-world problems for clients on a regular basis, our team has developed a breadth of experience that sets us apart. Additionally, for more than 20 years we have sponsored a foreign associate program that invites Latin American lawyers to practice with us, which greatly enriches our resources and regional network.