Argentina's YPF to sell $150 million 10-year notes in local market

By Paul A. Harris

St. Louis, Oct. 8 - Argentina's YPF SA plans to sell $150 million of 10-year senior unsecured notes (BB+) into the local market in a sale being driven by demand from Argentine pension funds, according to a market source.

"In Argentina the pension funds have to have a certain amount of their portfolios in non-government debt," the source explained.

Adding that YPF is majority-owned by Spain's Reposol YPF, the source remarked that it is one of the best credits in Argentina.

"They're going to manage to get a dollar-denominated deal done at levels that would look absolutely unbelievable to the rest of us," said the source speaking on the telephone in New York Wednesday afternoon.

"It's because it's a great company, and the pension funds are stuck. They have to buy something."

BNP Paribas is the bookrunner, the source said.

Timing on the deal remains to be determined, the source said, but added that the deal is not likely to price soon.

Proceeds will be used to fund the company's capital expenditures.

The prospective issuer is a Buenos Aires-based energy company.

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