Buenos Aires extends exchange offer for bonds by additional month

By Taylor Fox

New York, March 1 – The Province of Buenos Aires further extended the expiration of its invitation to certain holders of its foreign currency external bonds to exchange those instruments for new bonds, according to a news release.

The exchange offer will now expire at 11 a.m. ET on March 26, extended from 11 a.m. ET on Feb. 26. The offer began on April 24, 2020, and the deadline has been extended a number of times.

Results will now be announced on March 29. The execution date, effective date and settlement date will be April 5.

As previously reported, $7.1 billion of bonds are eligible to participate in the exchange offer.

The eligible bonds include dollar- and euro-denominated series issued under an indenture dated Jan. 12, 2006 and dollar- and euro-denominated series issued under an indenture dated June 9, 2015.

The republic is setting a cap for some of the series of new bonds.

Tenders may be withdrawn at any time at or prior to the expiration.

Buenos Aires had said the overall purpose of the exchange offer is to obtain the relief needed to regain the sustainability of its external debt.

Eligible bonds

Holders of the following outstanding 2006 indenture bonds are eligible to participate in the offer:

• $10,616,350.67 of 4% medium-term notes due 2020 (ISIN: XS0234086196, XS0234086436);

• $247,416,140 of 10 7/8% bonds due 2021 (ISIN: XS0584493349, XS0584497175);

• $400 million of 9 5/8% bonds due 2028 (ISIN: XS0290125391, XS0290124154);

• $480,445,406 of 4% bonds due 2035 (ISIN: XS0234084738, XS0234085032);

• €95,376,888.15 of 4% medium-term notes due 2020 (ISIN: XS0234085461, XS0234085891); and

• €577,388,900 of 4% bonds due 2035 (ISIN: XS0234082872, XS0234084142).

Holders of the following outstanding 2015 indenture bonds are eligible to participate in the offer:

• $898,380,908 of 9.95% bonds due 2021 (ISIN: XS1244682487, XS1244682057);

• $746,875,000 of 6½% bonds due 2023 (ISIN: XS1566193295, XS1566193378);

• $1,243,557,000 of 9 1/8% bonds due 2024 (ISIN: XS1380274735, XS1380327368);

• $1,749,400,000 of 7 7/8% bonds due 2027 (ISIN: XS1433314314, XS1433314587); and

• €500 million of 5 3/8% bonds due 2023 (ISIN: XS1649634034, XS1649634380).

New bonds

Argentina is offering to issue the following bonds in exchange for its existing bonds:

• Dollar amortizing step-up bonds due 2032, up to a maximum amount of $2.34 billion;

• Euro-denominated amortizing step-up bonds due 2032, up to a maximum of €540 million;

• Dollar amortizing step-up bonds due 2040;

• Euro-denominated amortizing step-up bonds due 2040;

• Dollar-denominated interest-only securities; and

• Euro-denominated interest-only securities.

Exchange considerations

For the 2006 indenture bonds, the exchange consideration per $100 or €100 principal amount is as follows:

• For the dollar MTNs due 2020, dollar bonds due 2021, dollar bonds due 2028 and dollar bonds due 2035, (i) $90 principal amount of new dollar 2032 bonds, subject to the cap, and $90 reference amount of dollar interest-only securities or (ii) $95 principal amount of new dollar 2040 bonds and $95 reference amount of dollar interest-only securities; and

• For the euro MTNs due 2020 and euro bonds due 2035, (i) €90 principal amount of new euro 2032 bonds, subject to the bond cap, and €90 reference amount of euro interest-only securities or (ii) €95 principal amount of new euro 2040 bonds and €95 reference amount of euro interest-only securities.

For the 2015 indenture bonds, the exchange consideration per $100 or €100 principal amount is as follows:

• For the dollar bonds due 2021, dollar bonds due 2023, dollar bonds due 2024 and dollar bonds due 2027, (i) $90 principal amount of new dollar 2032 bonds, subject to the cap, or (ii) $95 principal amount of new dollar 2040 bonds; and

• For the euro bonds due 2023, (i) €90 principal amount of new euro 2032 bonds, subject to the bond cap, or (ii) €95 principal amount of new euro 2040 bonds.

Due to the caps on the 2032 securities, holders who deliver tender orders indicating a preference for new 2032 securities in exchange for their existing securities may receive a combination of new 2032 bonds and new 2040 bonds as a result of proration.

BofA Securities, Inc. (888 292-0070 or 646 855-8988) and Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106) are dealer managers for the offer.

D.F. King & Co. (PBA@dfkingltd.com; +44 20 7920 9700 or 212 232-3233; or https://sites.dfkingltd.com/PBA) is the exchange, tabulation and information agent.

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