Argentina’s IRSA collects tenders, consents for 50.3% of 8˝% notes

By Susanna Moon

Chicago, April 4 – Inversiones y Representaciones SA said investors had tendered $75,446,000, or 50.3%, of its 8˝% notes due 2017, series No. 1, by the end of the offer at 5 p.m. ET on April 1, extended by one day from 11:59 p.m. ET on March 31.

IRSA also received consents for 50.30% of the 8˝% notes, which constitutes the majority needed to amend the terms of the notes, according to a company notice.

The noteholders meeting had been called for March 23 and then later canceled due to lack a quorum. A second meeting has been called for April 7.

The company also was tendering for two other series of notes, and those offers ended at 11:59 p.m. ET on March 31.

Holders had tendered $78,563,000, or 52.37%, of the $150 million of 11˝% notes due 2020, series No. 2, and delivered consents for 57.98% of the notes.

Investors also tendered $59,504,000, or 49.59%, of the $120 million of IRSA CP’s 7 7/8% notes due 2017 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.

As noted before, the response was insufficient to grant consents to amend the note indenture. A meeting planned for April 7 was not expected to meet quorum and was therefore canceled.

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

As previously reported, ISRA was 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 included 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.

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 also solicited 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 could 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 could not tender their notes in the offer without delivering consents to the proposed amendments in the solicitation.

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

The proposed amendments required 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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