Masher Extends Swap Again

Mastellone Hermanos, owner of Argentina’s La Serenisima dairy brand, is extending for the third time the deadline on a $222.5m debt exchange offer to February 26 from February 12. The dairy producer known in the bond markets as Masher says it has received consent from holders of $171m so far, representing 76.9% of creditors. Mastellone wants to exchange up to $222.5m in bonds and bank debt maturing 2011-2013 for new 2015 notes paying Libor plus 2.5% (capped at 6% all-in) and 2018s paying 7.0% initially, stepping up to 9.0% in 50bp annual increments starting January 2012. The swap will not reduce net debt. Bank of America-Merrill Lynch, hired in August to evaluate financial alternatives, is managing the process. Mastellone launched the offer early December.