Argentina’s Entre Ríos Province restructures $500m debt

Argentina’s Entre Ríos province has renegotiated its $500 million, 8.750% notes due 2025, having received consents from bondholders representing 97.15% of the outstanding principal amount of the notes.

Posted Monday, March 29th 2021
Argentina’s Entre Ríos Province restructures $500m debt

The transaction was executed through a consent solicitation directed to eligible holders of notes to effect certain proposed amendments to the terms of the notes, and involved negotiations with representatives of an ad hoc group of bondholders that led to an agreement in principle with respect to the proposed amendments prior to the launch of the consent solicitation.

In addition, the ad hoc group of bondholders agreed to withdraw the claim filed by certain entities under management of its members on January 4th, 2021 in the United States District Court for the Southern District of New York, seeking a judgment against the province.

As of the expiration time of the Consent Solicitation, the Province received consents from holders representing 97.15% of the outstanding principal amount of the Notes.

By virtue of the application of the collective action clause under the Notes, all Notes were amended to effect the Proposed Amendments, which included an extension of the maturity date, and amendments to the interest rate and the amortization schedule of the Notes.

HSBC Securities (USA) acted as solicitation agent in the restructuring of the province's $500 million 8.750% notes, and which was advised by Argentine law firm Bruchou, Fernández Madero & Lombardi, with a team led by partner Alejandro Perelsztein, and who was assisted by associate Lucila Dorado.

DLA Piper acted as local and New York advisor to the province of Entre Ríos, with a team led by partners Christopher Paci, Marcelo Etchebarne and Nicolas Teijeiro, and associate Juan María Rosatto (New York law), and partners Justo Segura and Antonio Arias, and associates Marcos Taiana and Valentina Melhem (Argentine law).

Clifford Chance acted as New York law counsel for the consent solicitation Agent, through a team led by partners Hugo Triaca and Deborah Zandstra, with associates Giancarlo Reanda and Pablo Fekete.

D.F. King & Co acted as information and tabulation agent.

Seward & Kissel acted as counsel to the trustee, with a team led by partner Gregg Bateman and counsel Y. Daphne Coelho-Adam.

Entre Ríos is located in central Argentina and its capital city is Paraná. The province’s economy is the sixth largest regional economy in the country and is predominantly agricultural, producing soybeans, wheat, maize and citrus fruits, and has an important livestock and dairy industry.