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Argentina's TGN announces results of series A, B notes exchange offer
By Caroline Salls
Pittsburgh, Oct. 15 - Transportadora de Gas del Norte SA said holders of 88.64% of its series A and series B notes had accepted the company's exchange offer when the offer expired on Wednesday.
In addition, 87.95% of the noteholders voted in favor of the exchange offer at a meeting held Wednesday, according to a company news release.
As previously reported, the company offered to exchange its $141.28 million of series A bonds, $203.63 million of series B bonds and $2.39 million of debt owed to third-party service providers under trade agreements.
Debtholders had two options under the exchange offer.
Under the first option, each $1,000 of debt will be exchanged for $400 in cash.
Under the second option, each $1,000 of debt will be exchanged for $1,000 of new seven-year bonds, which will have an interest rate of between 6½% and 8½%.
TGN said it will pay out a maximum of $40 million under the cash option and issue a maximum of $247.3 million of bonds under the second option.
The company said debtholders can also choose to exchange part of their debt for cash and part for new notes, subject to exchange procedures and reassignment if either option is oversubscribed.
TGN is a Buenos Aires-based natural gas company.
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