Argentina's TGN launches offer to exchange more than $347 million of existing debt

By Caroline Salls

Pittsburgh, April 23 - Transportadora de Gas del Norte SA said it has launched an exchange offer in connection with the proposed restructuring of $347.30 million of its debt under an Acuerdo Preventivo Extrajudicial, according to a company news release.

The company's existing debt includes $141.28 million in series A notes, $203.63 million in series B notes and $2.39 million owed to third-party service providers.

Specifically, the company said it is offering to exchange each $1 of existing debt for new notes due 2021 or $0.25 in cash.

The notes will accrue interest at 2% until the seventh year from their issuance, after which interest will be 6%.

According to the release, the company will pay a total of $30 million under the cash option.

The exchange offer will expire at 5 p.m. ET on June 5.

As previously reported, TGN elected in December to defer debt payments due Dec. 31 and due in 2009.

TGN is a Buenos Aires-based natural gas company.

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