It is its return to the capital market after four and a half years of its last international issue.
YPF returned to the international capital market and completed the placement of Negotiable Obligations for US$800 million with the mission of executing its investment plan of almost US$5,000 million by 2024. The indebtedness occurred hours before it was known the imminent announcement of the United States justice for possible embargoes in the expropriation case being processed in New York.
In a statement released this Thursday, the company with majority state participation indicated that the placement, maturing in 2031, “This is one of the company’s largest debt issues and represents the reopening of international markets for Argentine corporate issuers.” on its return to the capital market after four and a half years of its last international issue
“After receiving offers for more than US$1.8 billion, the company decided to issue negotiable obligations worth US$800 million,” added YPF, which in turn detailed that “the new bond is guaranteed with exports ( of crude oil), has a final maturity in seven years and an interest rate of 9.50%, with a yield of 9.75%”.
According to the company he leads Horacio Marinthe placement was simple negotiable obligations (not convertible into shares) class XXVIII denominated, integrated and payable in US dollars with maturity in 2031, which will accrue interest at a fixed rate with respect to the principal amount pending payment and will be guaranteed by a first degree assignment of privilege over the Collateral by virtue of a Real Security Right governed by the laws of New York, in the United States. The placement agents of the transaction were international banks Citibank, JP Morgan and Santander.
YPF revealed that he received offers for a total of US$1,856,145,000 and that the issue date will be next January 17, 2024. Meanwhile, the expiration schedule will be as follows:
- July 17, 2024
- January 17, 2025
- July 17, 2025
- January 17, 2026
- July 17, 2026
- January 17, 2027
- July 17, 2027
- January 17, 2028
- July 17, 2028
- January 17, 2029
- July 17, 2029
- January 17, 2030
- July 17, 2030
- January 17, 2031 (Expiration Date)
If a payment date is not on a business day, payment must be made on the immediately following business day, unless that day falls in a different calendar month or after the due date, in which case payment must be made on the following business day. immediately preceding business.
In the markets Oil royalties are safe from any seizure attempt by the beneficiaries of the ruling in the expropriation case. – However, if in 9-12 months the Court of Appeals again incorporates YPF into the case, those guarantees will be in the plaintiffs’ sights if Argentina has not previously reached an agreement with them. – Legal experts from both parties will give their opinion for and against this possibility.
The company will allocate the funds obtained to refining debt, and to finance its investment plan focused on the development of Dead cow and the growth in the production of unconventional hydrocarbons, as reported.
Source: Ambito
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