IRSA sees tenders for $238.99 million of 2023 notes in exchange offer

By William Gullotti

Buffalo, N.Y., July 7 – Argentina’s IRSA Inversiones y Representaciones SA announced the expiration and final results of its twice-extended exchange offer for any and all of its $360 million outstanding 8¾% series 2 notes due 2023 (ISINs: US463588AA16, USP5880UAB63), according to a press release on Thursday.

The May 16 offer was to exchange the series 2 notes, originally issued by IRSA Propiedades Comerciales SA, for new 8¾% senior notes due 2028 to be issued by IRSA.

As of the 5 p.m. ET July 6 deadline, the information and exchange agent reported that $238,985,000 of the notes had been tendered, or 66.38% of the outstanding total principal amount of notes.

As previously reported, noteholders had two mutually exclusive choices: option A or option B.

Of the aggregate principal amount of tendered notes, $145,373,500, representing about 60.83% of the principal amount of tendered notes, were tendered under option A, and $93,611,500, representing about 39.17% of the principal amount of tendered notes, were tendered under option B.

According to the press release, IRSA waived the minimum exchange condition.

Upon settlement, the company expects to issue $171,202,815 of new notes and to pay an aggregate sum of $77,794,596.59, which includes accrued interest, as total consideration for the tendered notes.

Under option A, tendering holders will receive $514.42 principal amount of new notes and $493.18 of pro rata A cash consideration per $1,000 principal amount of existing notes tendered and accepted for exchange.

Under option B, tendering holders will receive $1,030 principal amount of new notes for each $1,000 principal amount of existing notes tendered and accepted for exchange.

In each case, tendering holders will receive accrued interest from the interest payment date on March 23 to but excluding the settlement date.

Settlement remains planned for July 8.

Eligible holders of the existing notes who are Argentine entity offerees may be subject to certain tax withholdings resulting from the exchange of their existing notes.

BCP Securities, Inc., Citigroup Global Markets Inc., Itau BBA USA Securities, Inc. and Santander Investment Securities Inc. are acting as dealer managers of the Rule 144A and Regulation S offer.

Morrow Sodali (https://bonds.morrowsodali.com/IRSAEligibility) is acting as the exchange and information agent.

IRSA is a real estate company based in Buenos Aires.

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