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Province of Jujuy seeks holder consents to amend 8 5/8% notes due 2022
By Rebecca Melvin
New York, March 5 – Argentina’s Jujuy Province has launched a consent solicitation to amend its 8 5/8% notes due 2022 to be able to reduce the coupon and extend the maturity date of the notes, according to a news release.
There is currently $210 million outstanding of the notes.
Specifically, the province is seeking to reduce the interest rate under an amended indenture to 5¼% until Sept. 20, 2021 and to 5¾% from Sept. 20, 2021 to March 20, 2022.
From March 20, 2022 to March 20, 2027, the new maturity date, the interest rate would be 8 3/8%.
In addition, the province is seeking to amend the amortization schedule of the notes to nine equal semi-annual installments, expressed as a percentage of the aggregate principal amount of the notes on the settlement date including an aggregated payment-in-kind payable as a consideration upon consent.
The consent solicitation will expire at 10 a.m. on March 18.
Holders who validly deliver a consent on or prior to the expiration will be eligible to receive as consent consideration a pro rata share of the aggregate amount of unpaid interest on all outstanding notes from Sept. 20, 2020 to but excluding the settlement date. Sixty percent of the consideration will be paid in cash and 40% will be paid by the issuance of additional notes.
Consents from eligible holders of 75% or more of the aggregate principal amount of notes outstanding are required to implement the amendments.
The province has reached an agreement in principal with an ad hoc group of bondholders, represented by VR Advisory Services Ltd., which currently holds more than 50% of the principal amount outstanding.
BCP Securities LLC and Santander Investment Securities Inc. are the solicitation agents.
Global Bondholder Services Corp. (866 794-2200, 212 430-3774) is acting as the information and tabulation agent.
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