The oil company YPF announced to the market that it decided to increase from 30% to 50% the floor of adhesion to the exchange of the holders of its negotiable obligations for US $ 6,600 million, in line with the request made by different investment funds to adapt it to standards international.
The company announced, through a communication sent to the National Securities Commission (CNV), the formulation of an addendum to the definition of “required majorities” included in the Memorandum of Exchange Offers and Request for Consent, publicly released on January 7 .
This addendum addresses a modification, which is estimated to be positively understood by the market, with a more demanding proposal than the one established by the Argentine Commercial Companies Law -of the original offer- on the minimum adhesion percentage by bondholders with which the exchange must have to be considered accepted.
With this modification, the exchange proposal made by the oil company for bonds maturing between 2021 and 2047 for a total of US $ 6,600 million will require a guarantee of “more than 50% of the outstanding capital amount of the class of obligations. existing negotiable instruments that are affected by said proposed modification ”.
In this way, the company decided not to guide the exchange on the basis of the local law by which it could consider accepted the exchange with a floor of 30%.
“The clarification seeks to avoid that it is interpreted among the holders that there was bad faith on the part of the company,” the company stressed.
Based on this, those holders who at the time of the addendum have already submitted their acceptance through the different underwriters must revoke their powers before the offer withdrawal date in order to subsequently access the new acceptance conditions.
Citigroup Global Markets Inc., Santander Investment Securities Inc., HSBC Securities (USA) Inc. and Itaú BBA USA Securities, Inc. act as international underwriters in connection with the exchange offers and the request for consent.
YPF seeks to refinance its debt, estimated at around US $ 6,600 million, through the delivery of three bonds maturing in 2026, backed by the export collection flow, in 2029 and 2033.
The original text of this article was published on 01/16/2021 in our print edition.