Masher Wraps Up Exchange

Mastellone Hermanos, owner of Argentina’s La Serenisima dairy brand, has completed its debt restructuring offer, with holders representing $218.0m of its $222.5m debt (98%) agreeing to take new bonds. The dairy producer known in the bond markets as Masher offered holders of bonds and bank debt maturing 2011-2013 for new 2015 notes paying Libor plus 2.5% (capped at 6% all-in). It also offered 2018s paying 7.0% initially, stepping up to 9.0% in 50bp annual increments beginning January 2012. The swap does not reduce net debt. Bank of America-Merrill Lynch managed the process. Mastellone launched the offer early in December, and aims to reduce net debt by $20m by the end of 2011.