Argentina’s Arcor makes $800m debt issuance

Argentine food producer Arcor has issued debt totaling $800 million in two note issuances.

Posted Tuesday, November 2nd 2021
Argentina’s Arcor makes $800m debt issuance

The issuance comprised Series 16 notes for 1.5 billion pesos and Series 17 Notes for 27.8 million UVA, totaling $80 million or its equivalent in other currencies or units of value.

The Series 16 Notes will be due after 18 months as from the issuance date on April 20th, 2023, and will bear interest at a variable annual rate equal to the sum of the Badlar Rate plus the applicable margin of 2.97%, and will be repaid in three consecutive payments.

The first payment for an amount equal to 33% of the nominal value of the Series 16 Notes is due after twelve months from the issuance date, the second payment will be for an amount equal to 33% of the nominal value of the Series 16 Notes, due after 15 months, and the third will be for an amount equal to 34% of the nominal value of the Series 16 Notes, due on the Series 16 Notes due date.

Fix Argentina and Moody's Argentina have rated the Series 16 Notes as "AAA(arg)" and "AA.ar", respectively.

The Series 17 Notes will be due after 48 months as from the issuance date on October 20th, 2025, and will bear interest at a fixed annual rate equal to 0.98%. The notes will be repaid in a single payment due on the Series 17 Notes due date.

Fix Argentina and Moody's Argentina have rated the Series 17 Notes as "AAA(arg)" and "AA.ar", respectively.

Banco Bancro, Industrial and Commercial Bank of China (Argentina) and Banco BBVA Argentina acted as arrangers and placement agents of the issuance, while SBS Trading, Balanz Capital Valores, TPCG Valores, Facimex Valores and Macro Securities acted as local placement agents of the issuance.

Arcor was advised by Muñoz de Toro Abogados with a team led by Ricardo Muñoz de Toro, with Laura Gomes, Guillermina Muñoz de Toro and Evelyn Rivas. 

Bruchou, Fernández Madero & Lombardi acted as counsel to the arrangers and placement agents, with a  team led by Alejandro Perelsztein, with Leandro Exequiel Belusci and Sebastián Pereyra Pagiari.