Category: Argentina

Houston-based Noble Energy agreed to sell its interest in the El Tordillo, La Tapera, and Puesto Quiroga concessions in southern Argentina to a unit of Petrobras for $117.5m. Noble expects after-tax proceeds of $80m from the deal expected to close in 2008.

The IFC has signed a $130m A/B loan for Argentine candy maker Arcor. A portion of the loan with a 6-year tenor will be syndicated, with Itau, Santander, BNP Paribas, Calyon, Rabobank and WestLB as lead arrangers. The A loan apparently has a 10-year maturity. Proceeds are for debt refinancing and investment. In July, Arcor pulled a $100m 10-year bond, talked at 8.25%-8.50%, via Citi.

The IFC has signed a $130m A/B loan for Argentine candy maker Arcor. A portion of the loan with a 6-year tenor will be syndicated, with Itau, Santander, BNP Paribas, Calyon, Rabobank and WestLB as lead arrangers. The A loan apparently has a 10-year maturity. Proceeds are for debt refinancing and investment. In July, Arcor pulled a $100m 10-year bond, talked at 8.25%-8.50%, via Citi.

S&P has upgraded Argentina’s Edelnor to BB- from B+ mainly due to its improved financial risk profile, which is partly evidenced by significantly higher debt-service coverage ratios and $66m cash reserves as of September 30. The outlook is positive, reflecting expected good and more stable cash flow generation in the next two years partly as a result of increased medium and long-term power sale contracts at relatively high prices. S&P expects Edelnor’s cash flow generation to benefit from higher contracted power sales in the next three years.

Argentina’s Ternium says its subsidiary, IMSA Acero has entered into a stock purchase agreement with BlueScope Steel for the sale of IMSA’s interests in Steelscape, ASC Profiles, Varco Pruden Buildings and Metl-Span. The deal values the assets at $730m on a cash-free and debt-free basis, subject to working capital and other adjustments. BlueScope Steel will also assume approximately $20m in under-funded pension liabilities. Ternium intends to use proceeds to prepay debt. “By selling the assets that are not a strategic fit with our production system, we seek to enhance our focus on our core businesses in the Americas and reaffirm our commitment to create value through a disciplined approach to expansion that is consistent with our regional strategy,” says Ternium CEO Daniel Novegil. The transaction, subject to US antitrust clearance, is expected to close in Q1 2008. Goldman Sachs was exclusive financial advisor to Ternium. Ternium will continue to own Steelscape’s Shreveport plant. It will also will retain its pre-engineered metal buildings and insulated steel panels businesses in Mexico. The assets being sold accounted for annual net sales of approximately $1.2bn in 2006.

Beatriz Paglieri, the head of price measurements at INDEC, Argentina’s economic statistics bureau, has been removed in an apparent attempt by the new president to wipe the slate clean at the troubled organization. Paglieri was appointed by Guillermo Moreno, minister of interior commerce earlier this year. Many critics say the move was an attempt by the government to place one of their own in the organization to help dress up the official inflation figures, which, according to lower-ranked INDEC employees, dramatically understated the real numbers. A search for a replacement is underway.

Argentina’s Transportadora de Gas del Norte plans to submit for approval a bond program of up to $400m, it told shareholders in a filing Tuesday. The program will be submitted to investors at a January 22 meeting. The bonds may be denominated in dollars or other currency.

Steelmaker ArcelorMittal dropped another South American firm in its shopping cart, agreeing to acquire Argentina’s M.T. Majdalani y Cia. for an undisclosed price. The deal for the family-owned maker of flat stainless steel products awaits regulatory approval. In October, ArcelorMittal paid $542m to buy the third of Argentine steel company Acindar that it did not already own. Last week ArcelorMittal agreed to spend up to $1.75bn to buy out ArcelorMittal Inox Brasil, formerly known as Acesita.

Beatriz Paglieri, the head of price measurements at INDEC, Argentina’s economic statistics bureau, has been removed in an apparent attempt by the new president to wipe the slate clean at the troubled organization. Paglieri was appointed by Guillermo Moreno, minister of interior commerce earlier this year. Many critics say the move was an attempt by the government to place one of their own in the organization to help dress up the official inflation figures, which, according to lower-ranked INDEC employees, dramatically understated the real numbers. A search for a replacement is underway.

Steelmaker ArcelorMittal dropped another South American firm in its shopping cart, agreeing to acquire Argentina’s M.T. Majdalani y Cia. for an undisclosed price. The deal for the family-owned maker of flat stainless steel products awaits regulatory approval. In October, ArcelorMittal paid $542m to buy the third of Argentine steel company Acindar that it did not already own. Last week ArcelorMittal agreed to spend up to $1.75bn to buy out ArcelorMittal Inox Brasil, formerly known as Acesita.