Formosa Province To Swap Old For New

The Argentine province of Formosa is planning to swap up to $94.9m of its defaulted bonds for new bonds due 2032, according to a filing with the Buenos Aires Stock Exchange. The old bond series were issued in March 1999 and September 1999. Formosa plans to cancel $69.9m of the former bonds and $25m of the latter. The new 25-year paper will have an issuance date of March 4, 2007, and carry a coupon of 5%. The first principal payment will be made in June 2012.