Argentina’s Province of Neuquen announces results of exchange offer

By Caroline Salls

Pittsburgh, May 13 – The Province of Neuquen, Argentina, announced the final results of its offer to exchange its 7 7/8% guaranteed bonds to due in 2021 for 8 5/8% bonds due in 2028.

According to a news release, holders of 69.5% of the principal amount of the original 2021 bonds participated in the exchange offer, which expired at 5 p.m. ET on Thursday.

A total of $180.6 million original principal amount, or $110.2 million of the current principal amount, of the 2021 bonds were tendered for exchange

The exchange offer settlement is expected to occur on May 17. In connection with the settlement, the province will issue $113.5 million of bonds.

As previously reported, holders will receive for each $1,000 of 2021 bonds exchanged $1,000 of new bonds, multiplied by an exchange ratio of 1.03, as well as a depreciation factor of 0.61 and the amount of accrued cash interest.

The province said it has requested the listing of the new bonds on the Luxembourg Stock Exchange and to support its marketing in the Euro MTF market of the Luxembourg Stock Exchange, the Buenos Aires Stock Market SA and the Open Market SA.

Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC were the exchange agents, with Banco de Galicia y Buenos Aires SA, Banco Macro SA and Puente Hnos. SA acting as local agents and Global Bondholder Services Corp. as information agent.

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