Argentina’s YPF Considers $3bn IPO

YPF, the Argentine unit of Spain’s Repsol YPF, plans to sell publicly at least a 20% stake in a global offering between the second and third quarter, according to an executive familiar with the company’s plans. Assuming a $15bn market value, that could result in an offering of well over $3bn, says the source. An Argentine listing is planned and will likely be accompanied by placements in New York and/or London. Separately, the company has confirmed plans to sell 14.9% to an equity group headed by Argentina’s Eskenazi Family and the Petersen Group. That agreement comes with an option to sell to the buyers an additional 10.1% at any time thereafter. The deal is being financed with a $1.02bn loan led by Credit Suisse, including participation from BNP Paribas, Goldman Sachs and Itau. It will be syndicated out in the first couple months of the year to a second tier. The loan has an average life of three years and pays basis Argentine 3-year CDS, with a margin that translates into Libor plus just over 500bp. Morgan Stanley, formerly part of the lending group, is heard to have quit due to concerns relating to the US credit crisis. The US investment bank declined to comment on the rumor.