“These are Negotiable Obligations in dollars launched in 2017, through an interesting refinancing for investors, since around 80% is in the hands of private banks and institutional investors, who endorse the exchange, who will benefit from the proposal heading to the floor of 95% total acceptance”explained one of the sources on condition of anonymity.
The exchange offer and request for consent is made in accordance with the regulations of the central bank, in full force of a strict exchange rate to prevent the flight of dollars, where AySA offers the minimum cash payment of 35% of the bond to those creditors to give their approval to the proposals next Thursday.
Creditors who adhere from December 9 to the 19 of the same month will receive 30% in cash, according to the prospectus seen by Reuters.
The creditors that participate in this restructuring will also be paid the accrued interest and will receive a new bond that will be amortized 5% in November 2023, four installments of 20% in May and November 2024 and 2025, and 15% in May 2026. The interest rate of the new bond will be 7.9%.
“The proposal made by the company represents one of the best made in recent years to creditors, showing its commitment to international capital markets,” a source who works with one of the placement agents told Reuters.
Simultaneously With the exchange offer, AySA requests the consent of a simple majority of creditors to have the possibility of using the Extrajudicial Preventive Agreement (APE), without this being an event of default. This tool would allow the terms agreed with a majority of them to be extended to all creditors.
Consenting creditors will receive an exchange ratio -applied to the original amount of the current bonus minus the cash payment to be received- of 99.75%, while those who do not give it will have an exchange ratio of 99%, explains the official brochure of the plan.
Source: Ambito
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