| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers P > Headlines for Province of La Rioja > News item |
Argentina’s La Rioja reaches agreement with bondholder group
Chicago, Aug. 25 – The Argentinean Province of La Rioja has reached an agreement in principle with an ad hoc group of bondholders represented by VR Advisory Services Ltd. and Sandglass Capital Advisors LLC and with GoldenTree Asset Management LP to support a proposal to amend the province’s 9¾% green bonds due 2025, according to press releases posted on Wednesday.
The ad hoc group and GoldenTree collectively hold around 63.7% of the $300 million principal amount of notes. The ad hoc group holds approximately 52.2% of the notes.
The province is expected to formally launch a consent solicitation on Aug. 31.
More than 75% of the noteholders will need to consent in the solicitation.
The coupon schedule will change with the amendments. The province will pay a 3½% coupon starting in August that steps up multiple times. The first step up will be to 4¾% on Feb. 24, 2022, then 6½% starting Feb. 24, 2023 and then 8½% on Feb. 24, 2024 going forward. The first coupon would be paid Feb. 24, 2022.
The maturity would be Feb. 24, 2028 on the amended notes.
There would be an amortization schedule of nine semiannual payments starting on Feb. 24, 2024. One of the payments would be for 5% of the principal and then eight payments would be for 11.875% of the principal.
A consent payment will be given to consenting holders from the unpaid interest on the notes through Aug. 23. It will be allocated as 58% in cash (minus transaction expenses of $600,000 incurred by the ad hoc group) and 42% in the form of additional notes.
Subject to effectiveness of the amendments and settlement of the other elements of the consent solicitation on the agreed terms, the holders have agreed to withdraw their claim seeking a judgment against the province filed in the U.S. District Court for the Southern District of New York.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.