Mastellone reaches minimum tender condition for exchange offer

By Rebecca Melvin

Concord, N.H., June 22 – Argentina’s Mastellone Hermanos SA said that additional existing notes have been tendered in its exchange offer for $162,750,139, or 81.5%, of its $199,693,422 of 12 5/8% series F notes due July 3, 2021, according to a news release.

As of 5 p.m. ET on June 21, noteholders had tendered another $3 million of notes, which added to $159.8 million principal amount of the notes outstanding that had been tendered by the early tender date on June 14, means that the minimum tender condition has been met. About $162.9 million principal amount of existing notes have been tendered, representing 81.56% of the total amount, and exceeding the 81.50% minimum tender amount.

As previously reported, the company is offering a combination of new 10.95% senior secured notes due 2026 and cash in exchange for the existing notes (Cusips: 57632PAU4, P6460MAJ3).

For each $1,000 principal amount of the existing notes, the company is offering $675 of new notes and $325 cash. In addition, holders who tendered by the early deadline will receive their pro rata share of a $1.4 million early cash consideration.

Holders will also receive accrued interest.

The offer will expire at 11:59 p.m. ET on June 28.

Tenders may no longer be withdrawn.

Eligible holders of about 60% of the existing notes confirmed their support of the offer by the time it launched, the company said.

The offer is subject to some conditions, including a minimum tender amount equal to 81.5% of the existing notes and a finance condition. The company may waive the minimum tender condition, but as of the early deadline the terms of the exchange offer remain unchanged.

Mastellone Hermanos said the purpose of the exchange offer is to extend the maturity of its debt obligations and that it may be unable to pay principal and interest on the existing notes if the offer is not consummated.

Global Bondholder Services Corp. (866 924-2200, 212 430-3774, contact@gbsc-usa.com, https://gbsc-usa.com/eligibility/mastellone) is the exchange and information agent.

Citigroup Global Markets Inc. (212 723-6106 or 800 558-3745), J.P. Morgan Securities LLC (212 834-7279 or 866 846-2874) and Santander Investment Securities Inc. (855 404-3636 or 212 940-1442) are the dealer managers.

Mastellone Hermanos is a dairy company based in Buenos Aires.

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