Argentina’s Chubut receives consents from holders of notes due 2026

By Cady Vishniac

Detroit, Jan. 7 – The Argentinian Province of Chubut received the requisite consents from holders to amend its 7¾% secured amortizing notes due 2026 (ISINs: US17127LAA35, USP25619AB67) on Dec. 17, according to a press release.

Holders tendered more than 90% of the $622,916,667 of the notes outstanding.

As previously reported, the province began consent solicitations on the notes on Dec. 4, having reached an agreement in principle with the committee on Nov. 14.

The main amendments for which the province received consents are:

• A modified amortization profile and extending the maturity of the notes through July 26, 2030;

• Interest of 7.24% per year on the notes through Oct. 26, 2021, then interest of 7¾% per year, payable quarterly; and

• Enhanced collateral status, with additional royalties pledged under the amended structure.

The province expects these amendments will relieve it of $169 million of debt by October 2023.

The solicitations expired at 5 p.m. ET on Dec. 15. Because the province received the necessary consents to amend the notes, it will give a pro rata share of $3,114,583 in cash to all eligible holders who delivered their valid consents by this deadline.

UBS Securities LLC (203 719-8111, 212 821-6009) was the consent solicitation agent, and Proficio was the province’s financial adviser. DLA Piper acted as legal counsel to the province.

Morrow Sodali (+852 2158 8405, +44 20 8089 3287, 203 609-4910, chubut@investor.morrowsodali.com, https://bonds.morrowsodali.com/chubut) was the information and tabulation agent.

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