Edenor 9¾% noteholders group forms to oppose consent solicitation

By Wendy Van Sickle

Columbus, Ohio, July 19 – An ad hoc group of holders of 9¾% senior secured notes due 2022 issued by Empresa Distribuidora y Comercializadora Norte SA (Edenor) has organized to oppose a consent solicitation announced Friday, according to a company news release.

The group has retained Quinn Emanuel Urquhart & Sullivan, LLP to represent its interests.

According to the release, the solicitation “attempts to strip holders of notes of important rights” stemming from the June 30 sale by Pampa Energia SA of its 51% stake in Edenor to Empresa de Energía del Cono Sur SA, an event that triggered a change of control under the note indenture.

As announced on July 16, Edenor is offering holders a consent fee of $20 per $1,000 principal amount of notes to agree to a waiver that would allow the issuer to omit compliance with the section of the indenture relating to a repurchase at the option of holders upon a change of control.

Members of the group intend to decline to participate in the solicitation and urge all holders to do the same, according to the release.

“The notes currently trade at a substantial discount to par, and the consent payment offered by Edenor falls far short of what noteholders should require to forego the option to have their bonds redeemed at par by the end of September of this year,” the release states.

Edenor is a Buenos Aires-based electricity producer.

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