TGN Issues $200m in Bonds

Transportadora de Gas del Norte (TGN) has issued $200m in two new series of bonds following an exchange offer to holders closed earlier this month. The Argentine gas pipeline operator has issued $150m in 2019 step-up notes – paying 3.5% through the first two years, 7.0% through the second two years and 9.0% during the remainder – and $50m in claim protection notes, which pay no coupon and are due 2013 barring a credit event. TGN received acceptance from $304m, or 88%, of bond holders, barely meeting the minimum it had set. The exchange offer targeted $141m outstanding in 9.52% 2012 bonds and $204m outstanding in 9.45% 2012 bonds. Accepting holders received, for each $1,000 principal, $494.20 in new 2019 step-up notes, $164.68 in new claim protection notes, and $280 in cash. TGN also chose to pay all accepting holders the early acceptance premium of $49.45 cash per $1,000. TGN defaulted on its debt in 2008.