Transportadora de Gas del Sur launches tender offer for debt restructuring notes

By Caroline Salls

Pittsburgh, April 9 - Transportadora de Gas del Sur SA launched its tender offer for the notes it issued via an exchange offer in December 2004 under its debt restructuring, according to a company news release.

The tender offer applies to the company's $121.58 million of class A notes; $233.56 million of class B-A notes; $21.74 million of class B-B notes; $7.63 million of class A-P notes; $36.22 million of class B-A-P notes; and $3.35 million of class B-B-P notes.

The company will also redeem any notes not tendered in the offer on June 15.

TGS said noteholders will also receive interest unpaid as of March 15.

Holders of class B-A and class B-A-P notes will also be entitled to additional interest of 2% of the face value of the notes from Jan. 1 to the liquidation date, which is currently expected to be May 11.

As previously reported, the company will issue up to $500 million of new notes in one or more tranches, and it also plans to repay its loan agreement with the Inter-American Development Bank.

Specifically, holders of class A and class A-P notes will receive $694.60 per $1,000 of notes tendered; holders of class B-A and class B-A-P notes will receive $1,042.39 for each $1,000 tendered; and holders of class B-B and class B-B-P notes will receive $1,106.12 for each $1,000 of notes tendered.

Noteholders who tender their notes by 5 p.m. ET on April 23 will receive a premium of $2.50 for each $1,000 of notes tendered.

The offer expires at 11:59 p.m. ET on May 7.

TGS is a Buenos Aires-based natural gas distributor.

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