Edenor Gets 80% in Liability Management

Endenor says it has received $116.7m (78.5%) in outstanding 10.5% of 2017 bonds from the market, via repurchase and exchange offers expiring at the end of the month. The Argentine electric distributor has received acceptance from holders of $30.6m (20.6%) for direct repurchase, and $86.1m (57.9%) in exchange for new 9.75% 2022 bonds. The offer is funded by the sale last week of an additional $140m of the new B2/B minus 9.75% 2022 NC8 bonds, which priced at par. “Given the company’s quality and the favorable technicals, we think these notes could easily go to 104-105 very rapidly, post issuance,” Barclays says in a report, despite the fact that the new notes priced at the tight end of the initial 9.75%-9.875% guidance. In the offer launched October 3, Edenor was offering the new 9.75% of 2022 bonds, at rate of $1,030 principal per $1,000.00 tendered, plus a $70.90 cash bonus if done by October 15, or at $1,030 principal plus $50.90 cash if done by the November 1 expiration. The alternative option was a full cash payment of $1,060 per $1,000 principal if done by October 15, or $1,045 if done after. Deutsche Bank, JPMorgan and Standard Bank are managing the process.