Holland & Knight advised BCP Securities Inc. and Puente Servicios de Inversión S.A. as dealer managers, on the successful debt restructuring of $200 million in face value of foreign-denominated debt securities issued by the Province of Tierra del Fuego, Antártida e Islas del Atlántico Sur through a solicitation of consents to amend its 8.950 percent secured amortizing notes due 2027. Bondholders representing 90.89 percent of the principal amount of the notes outstanding delivered their consents, which allowed the application of the collective action clauses in the indenture to modify all notes. The transaction closed on December 28, 2023.
The existing bonds, issued in 2017, were due in 2027 and carried an 8.950 percent coupon. The restructuring adds an additional two years and nine months to the bonds' maturity and changes certain other terms of the securities. Additionally, the principal amortization schedule was modified to 20 installments starting in April 2025, and the interest payment date was also modified while maintaining the original interest rate. The existing collateral structure, which consists of hydrocarbon royalty payments to the province, was maintained.
Holland & Knight's representation of BCP Securities and Puente Servicios de Inversión was led by Partner Stephen Double and also included Associate Pedro de Elizalde and International Law Clerk Cristobal Morales. TCA Tanoira Cassagne advised as to Argentine law on the transaction.
Holland & Knight has advised on numerous landmark transactions in Argentina over the last several years, including on international bond liability management transactions by Empresa Distribuidora y Comercializadora Norte (EDENOR), Agua y Saneamientos Argentinos (AySA), IMPSA and the Provinces of Jujuy, Chubut and Cordoba; international bond offerings by the Provinces of Mendoza, Salta, Entre Rios, Rio Negro, Chubut, Tierra de Fuego and Jujuy; a significant new money loan financing by IDB Invest to Molinos Agro; and other energy and project financing transactions.
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