Mendoza province again extends exchange offer deadlines for 2024 notes

By Taylor Fox

New York, Sept. 14 – Argentina’s Province of Mendoza further extended the expiration of its offer to exchange its $590 million 8 3/8% notes due 2024 for new notes, this time to 9 a.m. ET on Sept. 25 from 9 a.m. ET on Sept. 11, according to a news release.

As of 9 a.m. ET on Sept. 11, holders had tendered about $356,874,000, or 67.3%, of the outstanding notes.

The province said in its Monday press release it is ready to conclude the exchange offer. However, the province expects to further amend the terms of the invitation, so it is extending the offer deadline.

The province had received on July 16 a support letter from an ad-hoc committee of some institutional investors who collectively hold a significant portion of the aggregate principal amount of the existing 2024 notes.

The letter outlined the conditions under which the ad-hoc committee was prepared to participate in the exchange offer. The province said it is willing to consider a commitment by the committee on a proposal of comparable economic value to that included in the letter, but it will not increase the aggregate amount of principal or interest payments on the new notes, according to the release.

If such a commitment is made and enough support from holders is received, the province expects to amend the exchange offer to incorporate those recommendations from the ad hoc committee.

The province said it also extended the consent payment eligibility deadline through 9 a.m. ET Sept. 25.

As previously announced, the province is offering to pay holders who tender their existing notes by the consent payment deadline a fee of $41.88 for each $1,000 of existing notes.

Holders who tender their existing notes by the new consent payment eligibility deadline will be eligible to receive the consent payment. Holders who previously tendered their notes will be eligible to receive the consent payment without needing to re-tender their notes, the release noted.

The revocation deadline has expired, and tender orders may no longer be revoked.

Both deadlines had previously been extended several times, as reported.

Assuming the province does not further extend the expiration of the offer, results will be announced on Sept. 28, and settlement will occur on Oct. 2.

The offer originally began on June 5 but was amended and restated on July 6.

Credit Suisse Securities (USA) LLC (212 538-2147 or 800 820-1653) and AdCap Securities Ltd. (646 280-8732) are the dealer managers. D.F. King is the information, tabulation and exchange agent.

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