Mastellone offers to exchange some 2021 notes for 2026 notes, cash

By Wendy Van Sickle

Columbus, Ohio, June 1 – Argentina’s Mastellone Hermanos SA has begun an offer to exchange $162,750,139, or 81.5%, of its $199,693,422 of 12 5/8% series F notes due July 3, 2021, according to a news release.

The company is offering a combination of new 10.95% senior secured notes due 2026 and cash in exchange for the existing notes (Cusips: 57632PAU4 and P6460MAJ3).

Mastellone Hermanos said the purpose of the exchange offer is to extend the maturity of its debt obligations and that it may be unable to pay principal and interest on the existing notes if the offer is not consummated.

For each $1,000 principal amount of the existing notes, the company is offering $675 of new notes and $325 cash. In addition, holders who tender by the early deadline, 5 p.m. ET on June 14, will receive their pro rata share of a $1.4 million early cash consideration.

Holders will also receive accrued interest.

The offer will expire at 11:59 p.m. ET on June 28.

Tenders may be withdrawn through the early deadline.

Eligible holders of about 60% of the existing notes have confirmed their support of the offer, the company said.

The offer is subject to some conditions, including a minimum tender amount equal to 81.5% of the existing notes and a finance condition.

Global Bondholder Services Corp. (866 924-2200, 212 430-3774 or contact@gbsc-usa.com) is the exchange and information agent.

Citigroup Global Markets Inc. (212 723-6106 or 800 558-3745), J.P. Morgan Securities LLC (212 834-7279 or 866 846-2874) and Santander Investment Securities Inc. (855 404-3636 or 212 940-1442) are the dealer managers.

Mastellone Hermanos is a dairy company based in Buenos Aires.

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