Argentina's Loma Negra, Caue solicit consents for 7¼%, 8 7/8% notes

By Angela McDaniels

Tacoma, Wash., Dec. 2 - Loma Negra Compania Industrial Argentina SA and Caue Finance Ltd. have begun consent solicitations seeking amendments to the indentures governing Loma Negra's 7¼% senior notes due 2013 and Caue Finance's 8 7/8% senior notes due 2015, according to a company news release.

Each series of notes is guaranteed by parent company Camargo Correa Cimentos SA.

The consent solicitations expire at 5 p.m. ET on Dec. 16.

The companies are soliciting consents in order to permit the distribution of equity interests of Itausa - Investimentos Itau SA and Usinas Siderurgicas de Minas Gerais SA - Usiminas held by Camargo Correa Cimentos to Camargo Correa SA, its parent entity.

Noteholders who consent will receive a fee of $2.50 per $1,000 principal amount of notes.

Additionally, upon consummation of the consent solicitations, Camargo Correa will issue a full and unconditional guarantee of the companies' obligations under the notes. This guarantee will not become operative until Camargo Correa Cimentos makes the distribution of the equity interests.

The new guarantee will be automatically released under certain circumstances, including if, at any time subsequent to the distribution, the consolidated net worth of Camargo Correa Cimentos equals or exceeds its consolidated net worth immediately prior to the distribution.

For the 8 7/8% notes, adoption of the proposed amendments requires the delivery of consents by holders of more than 50% of the outstanding notes.

For the 7¼% notes, adoption of the proposed amendments requires the approval of holders of more than 50% of the notes present or represented at the noteholder meeting on Dec. 22, and a quorum of at least 60% of the notes is required.

Bank of America Merrill Lynch (888 292-0070 or 646 855-3401) is the solicitation agent, and Global Bondholder Services Corp. (212 430-3774 or 866 873-6300) is the information agent.

Loma Negra makes cement, concrete and lime products and is based in Buenos Aires. Caue Finance is based in George Town, Grand Cayman.

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