Telecom Argentina begins exchange, tender offers for 6˝% notes

By Wendy Van Sickle

Columbus, Ohio, Oct. 9 – Telecom Argentina SA is making concurrent private cash tender and exchange offers for any and all of its $465,853,000 of outstanding 6˝% notes due June 15, 2021.

The offers will expire at 5 p.m. ET on Oct. 17.

Eligibility restrictions apply to each offer.

In the exchange offer, the company is offering to exchange the existing notes for new 9% notes due 2025 and cash.

For each $1,000 of existing notes, the company is offering $824 of new notes and $200 cash.

Telecom will not complete the exchange offer if the principal amount of new notes to be issued would be less than $150 million.

In the cash tender offer, the company is offering to pay $968 per $1,000 principal amount of notes.

The tender offer is conditioned on the total tender consideration not exceeding $10 million, exclusive of accrued interest.

In each case, the company will also pay accrued interest to, but excluding, the settlement date, which is expected to be Oct. 22.

The purpose of the exchange offer and cash tender offer is to reduce debt and extend the maturity of the company’s debt obligations associated with the old notes, according to a news release.

Global Bondholder Services Corp. (212 430-3774, 866 470-4500 or contact@gbsc-usa.com) is the information agent for the tender and exchange offer and the exchange agent.

Citigroup Global Markets Inc. (800 558-3745) and J.P. Morgan Securities LLC (212 834-7279 or 866 846-2874) are acting as dealer managers.

Telecom Argentina is a telecommunications company based in Buenos Aires.

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