Province of Buenos Aires asks Italy to approve restructuring debt exchange

By Caroline Salls

Pittsburgh, Sept. 22 - The Province of Buenos Aires presented required documentation in Italy to begin a debt exchange under its debt restructuring, according to a news release.

Italy is expected to give approval to begin the debt exchange at the end of October or beginning of November.

If the offer is approved, the holders of the 16 series of old bonds will be able to choose between new 2% long-term bonds due 2035 with a 15-year grace period, 1% medium-term bonds due 2020 with a 12-year grace period and a discount bond that starts to amortize in 2012.

The dollar-denominated discount bonds will bear interest at a 9.25% fixed rate and the euro-denominated discount bonds at 8.5%.

A maximum of $750 million of the medium-term bonds and $500 million of the discount bonds will be issued. If these bonds are oversubscribed, the balance will be redirected to the long-term bonds.

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