Buenos Aires gives update on restructuring dialogue with GoldenTree

Chicago, March 22 – The Province of Buenos Aires has maintained informal discussions with various institutional bondholders regarding its ongoing exchange offer, including GoldenTree Asset Management LP, one of the province’s largest bondholders, according to a press release.

The province submitted to GoldenTree a package that, according to the province, “gave investors opportunities to contribute to a successful debt restructuring while preserving the province's debt sustainability goals.”

The province reports that GoldenTree put forward “conditions in terms of overall debt service and maturity that expose a material digression from terms that the province could consider meaningful for the purpose of continuing discussions on a restricted basis.”

The province submitted to GoldenTree, in the form of a non-disclosure agreement, some materials regarding the proposal, including details of the exchange offer which, according to the materials submitted to GoldenTree, involved details about the new notes involved in the offer.

The materials delineated detailed on the 2031 bonds, in both dollars and euros, with step-up coupons starting at 1%, moving up to 2 3/8% in 2022 and then 4% in 2026 for the dollar bonds and 3 3/8% for the euro bonds.

Additionally, it listed the step-up coupons for the 2039 notes, for which there is a division between dollar notes and euro notes, also.

The coupon for the dollar notes was proposed as starting at 1%, moving up to 2 3/8% in 2022, 3 3/8% in 2024, 4 3/8% in 2026 and then 5.95% thereafter.

For the euro 2039 notes, the company had listed an initial rate of 1%, a step-up to 2 3/8% in 2022, 3 3/8% in 2024, 3 5/8% in 2026 and 5˝% thereafter.

In no instance was there a change in the principal.

The amortization schedule was also listed. There would be 15 semiannual equal payments starting in December 2024 for the 2031 notes and 16 semiannual equal payments starting in March 2032 for the 2039 notes.

The exchange invitation is set to expire on March 26.

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