Buenos Aires continues dialogue with bondholders, extends NDAs

Chicago, May 18 – The Province of Buenos Aires announced that it maintains informal discussions with various institutional holders and certain of their advisers about the ongoing exchange started April 24, 2020, according to a press release.

Under non-disclosure agreements, the bondholders group and the province have been exchanging proposals regarding the province’s potential total debt service cash flow.

The NDAs, except for one, have been extended by the province and the bondholders.

One bondholder has decided not to continue discussions and the agreement has expired in accordance with its terms.

Based on information provided in the press release regarding the exchanged proposals, the bondholders and the province still have some ground to cover before they meet in the middle.

The most modest difference between the proposals for debt service cash flow is around $19 million. However, that modest difference pertains to just one year, 2035. The proposals cover the specifics for each of the years from 2021 to 2037, with many years around $40 million apart and some years representing a difference of much more than $100 million. The early years are especially acute in the differences between the proposals, with 2022 only around $40 million different, but 2023 is over $200 million apart between the proposals and in 2024 the gap is $199 million.

Not surprisingly, in every case the bondholders group numbers exceed the province numbers, with an additional year added to the end of the province proposal to make up for a partial $500 million of the difference.

Ultimately, though – totaling the lines out, the proposals are in the aggregate separated by around $660 million for all of the years of debt service.

The exchange offer continues. The next deadline is 11 a.m. ET on May 21.

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