Argentina's Pan American Energy to issue $500 million notes due 2021

By Caroline Salls

Pittsburgh, April 23 - Pan American Energy LLC, Argentine Branch plans to issue $500 million of class I notes due 2021 under its $1.2 billion global notes program, according to a news release.

Net proceeds will be used for investments in physical assets and working capital in Argentina and to refinance debt.

According to a separate news release, the pricing terms, the interest rate and the issuance date are still to be determined.

The principal of the notes will mature in three equal annual installments beginning in 2019 and ending in 2021, on dates to be determined on the pricing date.

The international agents are Credit Agricole CIB, J.P. Morgan and HSBC, and the local agents are HSBC Bank Argentina SA and J.P. Morgan Chase Bank NA, Argentine Branch.

The notes will be sold at a minimum of $2,000 and in $1,000 increments thereafter.

The issuer may, at its option, redeem the notes at any time before maturity at a redemption price equal to the greater of 100% interest in the notes and the sum of present value of each remaining scheduled payment of principal and interest on the notes discounted to the redemption date on a biannual basis to the Treasury rate plus basis points to be determined on the pricing date, plus, in each case, interest on the capital of the notes to the redemption date.

Pan American Energy LLC will guarantee the notes.

Pan American is a Buenos Aires oil and gas company.

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