Argentina’s IRSA extends 8˝% note tender one day, announces results

New York, April 1 – Inversiones y Representaciones SA announced that it has extended its tender offer for its 8˝% notes due 2017, series No. 1, by one day and also disclosed the response to its tender offers for its 11˝% notes due 2020, series No. 2, and IRSA CP’s 7 7/8% notes due 2017.

The expiration date for the 8˝% notes will now be 5 p.m. ET on April 1, delayed from 11:59 p.m. ET on March 31, according to a news release.

Meanwhile the tenders for the other two series of notes expired as previously announced at 11:59 p.m. ET on March 31.

By that final deadline, holders had tendered $78,563,000, or 52.37%, of the $150 million of 11˝% notes and delivered consents for 57.98% of the notes.

They had also tendered $59,504,000, or 49.59%, of the $120 million of 7 7/8% notes and delivered the same number of consents. Of the total, $59,152,000 were tendered by the early deadline of 5 p.m. ET on March 16 and were purchased and canceled on March 28.

The response was not sufficient to grant consents to amend the note indenture. A meeting planned for April 7 is not expected to reach the necessary quorum and will therefore be canceled.

The response in the tender for the 8˝% notes was $72,968,000, or 48.65%, of the $150 million outstanding and the same number of consents.

At its previous announcement on March 28, IRSA announced the early and final settlement dates for the tender offer for the 7 7/8% notes.

The settlement date for notes tendered by 5 p.m. ET on March 16, the early tender time, is expected to be March 28, and the settlement date for notes tendered after the early tender time but prior to 11:59 p.m. ET on March 31, the offer expiration, is expected to be April 8.

As previously reported, ISRA is holding tender offers for up to $76.5 million of its 11˝% notes due 2020, series No. 2; any and all of its 8˝% notes due 2017, series No. 1, and any and all of IRSA CP’s 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 up to but excluding the applicable settlement date.

The tender offers will end at 11:59 p.m. ET on March 31, a deadline extended for the 8˝% notes.

As of March 16, holders had tendered

• $77,009,000, or 51.34%, of the 11˝% notes and given consents for 56.79% of the notes;

• $65.58 million, or 43.72%, of the 8˝% notes and consents for 43.72% of the notes; and

• $59,152,000, or 49.29%, of the 7 7/8% notes and consents for 49.29% of the notes.

ISRA is also 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 the 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, which is included in the total purchase price noted above. No consent payment will be made to holders of the 8˝% notes or 7 7/8% notes.

Holders of the 11˝% notes may either tender in the tender offer and thereby consent to the proposed amendments or not tender in the offer but give their consents.

Holders of 8˝% notes and 7 7/8% notes may not tender their notes in the offer without delivering consents to the proposed amendments in the solicitation.

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.

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 is a real estate company based in Buenos Aires.

© 2015 Prospect News.
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