Argentina’s AySA wraps offer to exchange 6 5/8% notes due 2023

By Wendy Van Sickle

Columbus, Ohio, Dec. 20 – Agua y Saneamientos Argentinos SA (AySA) announced the final results of its exchange offer for any and all of its $500 million outstanding 6 5/8% senior notes due 2023 (ISIN: XS1763161012), according to a press release.

The company offered to exchange the existing notes for 7.9% senior notes due 2026 and cash.

As of the expiry of the offer at 11:59 p.m. ET on Dec. 19, $478,179,000, or 95.64% of the existing notes, were tendered for exchange.

The offer was announced on Nov. 18 along with a consent solicitation seeking to eliminate some events of default under the indenture. By the early deadline, sufficient consents were delivered to approve the amendments, as previously reported.

By the early deadline, $476,734,000, or 95.35% of the notes, were tendered for exchange, and holders of $436,193,000, or 87.24%, of the notes, submitted consents under the solicitation.

After the early deadline, an additional $1,445,000, or 0.29%, of notes were tendered for exchange.

Non-consenting tendering noteholders were offered new notes in a principal amount that will be determined by multiplying 99% by $1,000 minus the cash consideration received.

Consenting tendering holders were offered new notes in a principal amount that will be determined by multiplying 99.75% by $1,000 minus the cash consideration received.

The early tender date cash consideration is $350 per $1,000 notes plus $50 for each $1,000 note tendered after the early tender date but before the late tender date, allocated pro rata to eligible early tendering noteholders.

The late tender cash consideration is $300 per $1,000 note.

Accrued interest will also be paid to the settlement date.

There was a minimum tender condition of 95% of the outstanding existing notes.

On the settlement date, expected to be Dec. 27, the company expects to issue $309,834,766 of the news notes and to pay a $180,209,650.16 cash consideration, including an early cash consideration of $166,928,410.10 and a late cash consideration of $433,500.

The early tender deadline was 5 p.m. ET on Dec. 8.

BofA Securities, Inc. (646 855-8988, 888 292-0070), HSBC Securities (USA) Inc. (212 525-5552, 888 HSBC-4LM, lmamericas@us.hsbc.com) and AdCap Securities Ltd. (646 280-8732, liabilitymanagement@adcap.com) are the dealer managers.

Morrow Sodali Ltd. is the information, exchange and proxy agent for the offer (203 609-4910, +44 20 4513 6933, aysa@investor.morrowsodali.com).

The company is the largest water utility in Argentina and majority owned by the republic.

© 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.