Argentina’s Capex starts exchange offer for 6 7/8% notes due 2024

Chicago, July 24 – Capex SA started an exchange offer for its $238,846,000 outstanding 6 7/8% notes due 2024 (Cusips: 139612AE5, P20058AC0), according to a press release.

The company is offering new 9¼% notes due 2028 and potentially cash, if selected. Accrued interest will also be paid to the settlement date.

Noteholders will select one of two options, option A or option B.

Option A

Under option A, early tendering noteholders will receive $1,000 of consideration for each $1,000 note tendered.

There will be a cash consideration that will be determined later with the remaining amount issued as new notes.

The cash consideration will be based on a pro rata distribution. It will be the lesser of three amounts: the aggregate principal amount of old notes tendered under option A before the early participation date, 21% of the aggregate principal amount of old notes validly tendered and accepted for exchange in the exchange offer or $50 million.

After the early deadline, though, noteholders will only receive new notes on a one-to-one basis, with no cash consideration.

Option B

The second option is more straightforward.

Early tendering noteholders will receive $1,040 of new notes for each $1,000 of notes tendered.

Or, if they tender after the early deadline, they will receive new notes on a one-to-one basis.

Details

The early deadline is 5 p.m. ET on Aug. 4, also the withdrawal deadline.

The offer expires at 11:59 p.m. ET on Aug. 18.

Settlement is expected to be on Aug. 25.

There is a minimum participation condition whereby noteholders must tender at least 70%, or $167,192,200 of the notes.

Further, at least $85 million of the tendered notes must be under option B.

There is also a financing condition. The financing condition is linked to certain pre-export facility agreements. The company needs to receive enough in cash proceeds from the facilities by the settlement date.

Exchanging noteholders will need to complete an eligibility letter (https://projects.morrowsodali.com/capex).

Citigroup Global Markets Inc. (212 723-6106, 800 558-3745) and Santander US Capital Markets LLC (212 940-1442, 855 404-3636) are the dealer managers.

Industrial and Commercial Bank of China (Argentina) SAU, Banco de Galicia y Buenos Aires SAU, Banco Santander Argentina SA and Banco CMF SA are acting as local placement agents.

Morrow Sodali International LLC is the information and exchange agent (203 609-4910, +44 20 4513 6933, capex@investor.morrowsodali.com).

Capex is a Buenos Aires-based energy company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.