The state-owned oil company will allocate US$500 million to repurchase Class XXXIX and Class LIII Negotiable Obligations.
YPF Like other Argentine companies, such as Pampa Energy, Telecom either Albanianbegan to buy back their own debt. In this way they seek to lower the cost of emissions and to extend the terms. Thus, the majority state-owned oil company will allocate US$500 million to buy back the debts Negotiable Obligations.
In this particular case, the ON Class XXXIX (ticker is YCA6O), maturing on July 28, 2025 and paying a rate of 8.5%, which had been issued in 2015 and the Class LIIImaturing on July 21, 2027 and with a coupon of 6.95%, issued in 2017.
The US$500 million covers only a partsince the first ON has US$1.130 million and the second, US$809 million. The funds will be obtained in turn from a new debt placement: it has already announced the issuance of a new ON with maturity in 2031 and fixed rate, with semi-annual coupon.
Under the terms of the buyback, YPF will offer a prize to those who enter before September 12. For each class XXIX bond, the payment will be US$1,012.50. After that date and until September 27, when the offer closes, the payment will drop to US$962.50.
In the case of the Class LIII bonus: for early entry, US$971.50 will be paid and then US$921.50
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
