Argentina’s Salta province gets consents to amend 9 1/8% notes due 2024

Chicago, Feb. 22 – The Argentinian province of Salta announced the expiration and successful conclusion of its consent solicitation to amend its $350 million outstanding 9 1/8% notes due 2024, according to a press release.

The province received consents from noteholders representing 95.51%, or $334,2850,000, of the notes by the 5 p.m. ET Feb. 19 deadline.

All consents delivered have been accepted, and the notes will be amended with a supplemental indenture.

The province is issuing $7,401,127 principal amount of notes and will pay $12,083,012 in cash as consent consideration to holders who delivered consents.

The payment will be made on Feb. 24.

After settlement, $357,401,127 of the notes will remain outstanding.

As previously reported, the province needed consents from noteholders representing at least 75% of the notes.

The amendments reduce the coupon and extend the maturity date of the notes to Dec. 1, 2027.

The coupon will be reduced to 4% from the settlement date to June 1, move up to 5% from June 1, 2021 to June 1, 2022 and then go up to 8˝% on June 1, 2022 for the rest of the life of the notes.

Unpaid and default interest through the settlement date will be waived. Interest will start to accrue again after the settlement date, and interest after the amendment will be paid on June 1 and Dec. 1 each year.

Additionally, the record dates of the notes will be shifted to May 31 each year, from Nov. 30.

Also, the amortization schedule will be amended to 10 semiannual installments starting June 1, 2023.

The company will pay 5% of the principal amount on the first two dates, 7.5% on the next two dates and 12.5% on each of the next six dates.

In the amendment, the minimum denominations of the notes will be modified to $1.00 and multiples of $1.00 in excess thereof from $150,000 and multiples of $1,000 in excess thereof.

The province will acknowledge the right of any beneficial holder of the notes to pursue a remedy under the indenture with respect to the portion of the relevant global security that represents such a beneficial holder’s securities as if certified securities had been issued to the holder.

The definition of “reserve matter modification” will be amended.

The amendment will also change all references to 9 1/8% notes due 2024 with step-up notes due 2027 in the indenture.

BofA Securities, Inc. is the solicitation agent.

D.F. King & Co. Inc. is working as the information and tabulation agent (212 269-5550 or 866 342-3676, www.dfking.com/salta).

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