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Electricidad Argentina begins solicitation to restructure debt under APE
By Caroline Salls
Pittsburgh, March 30 - Electricidad Argentina SA, the controlling shareholder of Empresa Distribudora y Comercializadora Norte SA (Edelnor) has begun to solicit consents from holders of its floating-rate notes due 2004 and its bank debt with Banque Europeene Pour l'Amerique Latine for a debt restructuring under an acuerdo preventivo extrajudicial.
According to a company news release, under the APE, debtholders can exchange their debt for new notes in the company at par and/or discount notes.
To date, creditors holding about 81.1% of the debt have agreed to the restructuring. According to the release, the company needs approval of 66 2/3% of creditors or holders of 90% of the debt.
Under the par option, for each $1,000 of debt, creditors can receive$1,000 of new notes.
Under the discount option, holders will receive $800 in discount notes for each $1,000 of debt.
The par notes will bear interest at 3% through 2009, then at 3.5% in 2010, 4% in 2011 and 5% in 2012 through 2017.
The discount notes will bear interest at 2.125% through 2008, 4% in 2009 and 2010, 5% in 2011 and 2012, 6% in 2013 and 2014 and 7% in 2015 and 2016.
Debt holders who submit their consents by 5 p.m. ET on April 14 will also receive $26.67 in additional notes for each $1,000 of debt and $46 in discount notes for each $1,000 of debt, plus cash interest from Jan. 1 up to the issue date of the new notes.
The invitation to subscribe to the APE runs through 5 p.m. ET on April 28.
Law Debenture Trust Co. of New York is the exchange agent.
Electricidad Argentina is a Buenos Aires electric company.
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