Argentina’s Cordoba receives consents from holders of 7 7/8% notes

By Taylor Fox

New York, Nov. 12 – The province of Cordoba in Argentina received and accepted the required consents regarding its $150 million of 7 7/8% senior notes due 2024 (ISIN: XS1496112407), according to a news release issued Wednesday.

As of the 11 a.m. ET Nov. 10 expiration time, the province received and accepted consents representing $125,684,000, or 83.79%, of the notes.

As previously reported, for the changes to pass, holders of more than 75% of the notes needed to deliver their valid consents.

By Nov. 17, the city will be executing a supplemental indenture in order to effect the proposed amendments and related waivers.

The city expects that the securities will be amended and the proposed amendments and related waivers will become effective upon payment of the consent consideration on the effective date, which is expected to be Nov. 18 and no later than Nov. 20.

The amount of consent consideration is expected to be $1,534,130.46, calculated from 31% of the interest unpaid on the notes from March 29 to Sept. 29.

Background

As previously reported, under the consent solicitation, the city was seeking to:

• Extend the notes’ maturity date to Sept. 29, 2027 from March 29, 2024;

• Make the interest payment on the notes in kind at a rate of 69% of the 7 7/8% coupon from March 29, 2020 through Sept. 29 and 100% of the 7 7/8% coupon from Sept. 29 to the effective date;

• Establish a new amortization schedule; and

• Change the coupon from a fixed rate of 7 7/8% to a step-up coupon schedule with semiannual interest payments starting on Sept. 29, 2021 and ending on Sept. 29, 2027.

After the effective date, the city is proposing the coupon to be 2 1/8% until Sept. 30, 2021, stepping up to 4½% until Sept. 29, 2022, to 6¼% until Sept. 29, 2023 and to 7% until Sept. 29, 2027.

Details

Santander Investment Securities Inc. is the solicitation agent.

Global Bondholder Services Corp. (212 430-3774, 866-470-3800 or contact@gbsc-usa.com) is the information and tabulation agent.

Argentina’s Cordoba province is where the country’s second most populous city is located.

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