By Reshmi Basu
New York, Sept. 7 - Three Argentinean utility companies issued a total of $75.5 million in 10¾% senior guaranteed notes via a modified reverse auction Thursday.
Empresa Distribuidora de Electricidad de Salta (Edesa) sold $48.5 million of the new notes at a clearing price of 101.50 to yield 10.23%. Empresa Distribuidora San Luis SA (Edesal) sold $18 million of the notes at 102 to yield 10.06% while Empresa Distribuidora de Electricidad de La Rioja SA (Emdelar) issued $9 million of the notes at 102 to yield 10.06%.
Parent company Empresa Distribuidora Electrica Regional SA (Emdersa) will guarantee the notes, which are set to mature on Dec. 9, 2010.
The price of each set of notes was determined by separate auctions. The minimum price had been set at 100 and the maximum price at 104.
Meanwhile the notes will start amortizing in 2007. The companies will pay back 10% on Dec. 9, 2007, followed by another 10% on Dec. 9, 2008 and 20% on Dec. 9, 2009. The remaining 60% will be paid at maturity.
The notes also will also be callable. On Dec. 9, 2006, the notes will be callable at 103. On Dec. 9, 2008, the notes will be callable at 101½ and Dec. 9, 2009 at 100.
Proceeds will be used for debt refinancing.
JP Morgan was the lead manager for the Regulation S deal.
| Issuer: | Empresa
|
| Issue: | Three tranches of 10¾% senior guaranteed notes
|
| Total amount: | $75.5 million
|
| Maturity: | Dec. 9, 2010
|
| Auction date: | Sept. 7
|
| Settlement date: | Sept. 14
|
| Lead manager: | JP Morgan
|
| Distribution: | Regulation S
|
|
|
| Edesa issue
|
| Issuer: | Empresa Distribuidora de Electricidad de Salta (Edesa)
|
| Amount: | $48.5 million
|
| Coupon: | 10¾%
|
| Clearing price: | 101.50
|
| Yield: | 10.23%
|
| Pro-ration: | 3.58%
|
|
|
| Edesal issue
|
| Issuer: | Empresa Distribuidora San Luis SA (Edesal)
|
| Amount: | $18 million
|
| Coupon: | 10¾%
|
| Clearing price: | 102
|
| Yield: | 10.06%
|
| Pro-ration: | 91.15%
|
|
|
| Emdelar issue
|
| Issuer: | Empresa Distribuidora de Electricidad de La Rioja SA (Emdelar)
|
| Amount: | $9 million
|
| Coupon: | 10¾%
|
| Clearing price: | 102
|
| Yield: | 10.06%
|
| Pro-ration: | 84.33%
|
|
|
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