Pampa Energia launches exchange offer for 7 3/8% notes due 2023

By William Gullotti

Buffalo, N.Y., June 16 – Argentina’s Pampa Energia SA started an any-and-all exchange offer for its outstanding $500 million 7 3/8% senior notes due July 21, 2023 (Cusips: 71647XAA5, P7873PAE6) for new notes, according to a press release on Thursday.

The offer features two options to exchange old notes, which were originally issued by Petrobras Argentina SA, for newly issued 9% notes due Dec. 8, 2026.

Option A

Noteholders tendering under option A on or prior to the early participation deadline will receive a combination of the early A pro-rata cash consideration and the applicable early A new notes consideration.

The pro-rata cash consideration will be an amount equivalent to the lesser of (1) 30% of the aggregate principal amount of old notes validly tendered and accepted for exchange in the entire offer and the principal amount of old notes accepted and (2) the principal amount of old notes accepted for exchange under option A.

The amount of new notes issued, per $1,000 principal amount tendered under option A, will be the difference between $1,000 and the pro-rata cash consideration.

Option B

Noteholders tendering under option B on or prior to the early participation will receive $1,010 principal amount of new notes per $1,000 principal amount validly tendered and accepted for exchange.

Offer details

Noteholders who tender after the early participation deadline but before the offer expiration will only receive $1,000 principal amount of new notes per $1,000 principal amount validly tendered and accepted for exchange, regardless of option choice.

In all cases, accrued interest will also be paid.

The offer is conditioned upon, among other conditions, a minimum of $350 million notes tendered in the offer.

The early participation deadline and withdrawal deadline are both 5 p.m. ET on July 6.

The offer will expire at 11:59 p.m. ET on July 20.

Settlement is expected to be Aug. 8, in compliance with the approval received from the Argentine Central Bank to access the foreign exchange market starting on Aug. 1 for obtaining the U.S. dollars required for the total cash consideration.

D.F. King Ltd. (877 732-3617; 212 269-5550; pampa@dfking.com) is the information and exchange agent for the exchange.

Citigroup Global Markets Inc. and Santander Investment Securities are the joint global coordinators and lead dealer managers for the exchange offer. BNP Paribas Securities Corp., HSBC Securities (USA) Inc. and J.P. Morgan Securities LLC are joint dealer managers. Banco de Galicia y Buenos Aires SAU, Industrial and Commercial Bank of China (Argentina) SAU and Banco Santander Argentina SA are acting as local placement agents.

Pampa Energia is an energy company based in Buenos Aires.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.