Argentina’s IRSA schedules second meeting for holders of 7 7/8% notes

By Angela McDaniels

Tacoma, Wash., March 23 – Inversiones y Representaciones SA said the meeting of the holders of its 7 7/8% notes due 2017, series No. 1, that took place on March 23 could not be carried out because the quorum was not reached.

A second meeting is scheduled for April 7, according to a 6-K filing with the Securities and Exchange Commission.

As previously reported, the company is holding tender offers and consent solicitations for the 7 7/8% notes, its 11˝% notes due 2020, series No. 2, and its 8˝% notes due 2017, series No. 1.

IRSA is soliciting consents from holders of the 11˝% notes to amend the notes to modify or eliminate some restrictive covenants and other provisions and from holders of the 8˝% notes and 7 7/8% notes to amend the notes to eliminate substantially all of the restrictive covenants and to modify or eliminate some events of default and other provisions.

For the 11˝% notes, the consent payment is $10 for each $1,000 of notes. No consent payment will be made to holders of the 8˝% notes or 7 7/8% notes.

In the tender offers, the company is offering to buy up to $76.5 million of the 11˝% notes and any and all of the 8˝% notes and 7 7/8% notes.

The total purchase price for each $1,000 principal amount will be $1,110.00 for the 11˝% notes, $1,005.00 for the 8˝% notes and $1,004.50 for the 7 7/8% notes.

The total amount will include an early tender payment of $30.00 per $1,000 of notes tendered by the early tender date, which is 5 p.m. ET on March 16 for the 7 7/8% notes and 11˝% notes and 11:59 p.m. ET on March 31 for the 8˝% notes.

The company also will pay accrued interest to but excluding the settlement date.

The tender offers will end at 11:59 p.m. ET on March 31.

The tender offers are subject to a financing and repayment condition as well as securing the needed consents.

The proposed amendments require votes from holders of a majority of each series of notes represented at the meetings.

Citigroup Global Markets Inc. (212 723-6106 or 800 558-3745) and J.P. Morgan Securities LLC (212 834-7279 or 866 846-2874) are the dealer managers and solicitation agents. Bondholder Communications Group, LLC (212 809-2663, 888 385-2663 or ISalvador@bondcom.com) is the tender agent and information agent.

IRSA said on March 2 that it had received approval from its board of directors to issue up to $470 million of global notes.

IRSA is a real estate company based in Buenos Aires.

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