YPF presented a new debt swap offer. The oil company seeks to restructure Negotiable Obligations for US $ 6.226 million and failed in the first attempt. On Tuesday, he made a proposal that improves rates, terms and offers new guarantees.
After almost a week in red, the stock improved this Tuesday by 8%. The company established that the February 5th It is the deadline for the bondholders to enter or not enter the exchange. He pushed it back one day from the original deadline, which was February 4.
Then, on February 11, there will be an assembly to carry out the changes in the conditions of the bonds that have already been issued.
On Monday, there was an attempt to explain the above proposal, which could not be carried out due to lack of quorum. That proposal was informative. YPF needed the virtual participation of the holders of the 60% of capital to restructure, but did not reach it.
Two analysts consulted reflected different opinions. “It is a good proposal, perhaps there is a little margin to improve it, but in general terms it is recommended,” he explained. “It is less bad than the previous one, but it is still bad for creditors. They pledge shares of a subsidized company worth little and nothing“, he describes.
A study specialized in this type of operation calculated the improvement in supply around the 5.7% compared to the previous proposal.
YPF strengthened guarantees that it will grant for the 2026 bond. It is backed by the export flow, but a garment was added in the first degree of YPF Luz, a subsidiary of YPF. Half of that company is owned by the state majority oil company, while the other 50% is owned by the United States. General Electric.
The state oil company, which cannot afford a payment of US $ 413 million in MarchSince the Central Bank does not sell the dollars for this operation, it seeks to clear its payment horizon until 2023. Only from there would it begin to pay coupons.
YPF proposes to issue to bonds to 2026, 2029 and 2033. “The series that extends to 2026 expires on February 12, 2026 and amortizes in 13 quarterly installments, equal and consecutive of 7.692% each from February 2023 until maturity. In the first offer, this title expired in November 2026 and amortized in 15 quarterly installments of 6.667% “, according to an analysis by Research for Traders.
The 2029 issue expires on June 30, 2029 and is amortized in 7 semi-annual installments, equal to 14.286%, each from June 2026 until maturity. Before, this bond expired in December 2029 and paid off in annual installments of 25% each.
“And the 2033 bond expires on September 30, 2033 and amortizes in four annual, equal and consecutive installments of 25% each from September 2030 until maturity,” the Research for Traders analysis also details. The amortization conditions did not change in this issue, although there is an improvement in the interest rate they will pay.
“The new proposal promises a Net Present Value (NPV) of US $ 74.4 per 100 nominal taking a discount rate (or exit yield) of 12%. Taking a discount rate of 14%, the NPV of the offer becomes US $ 67.6, while with a discount rate of 16%, the NPV becomes US $ 61.8 “, according to Research for Traders, which calculates the improvement at around US $ 5.7 per 100 nominal.
YPF had already made a change on January 14, where it modified the characteristics of the majorities necessary to proceed with the change of the terms. It was approved that it be by absolute majority.
Coupon payments are incorporated into the three new bonds at rates of 4% for 2026, 2.5% for 2029 and 1.5% for 2033, from the date of issue to December 31, 2022. Before, it was 0% for that period.
The company also provided some details on the impact on its investment plans, if this restructuring can be carried out. It promises to invest in upstream (drilling) 90% more than in 2020: it would go from US $ 1,100 million to US $ 2,100 million. In any case, it would be below the US $ 2.8 billion that it allocated to that task in 2019.
Within future disbursements, US $ 1.3 billion would be for non-conventionals -such as Vaca Muerta- and US $ 800 million for conventional. Oil will consume US $ 1.5 billion and gas, US $ 600 million.
YPF is preparing the results of its fourth quarter and annual balance for 2020. It is estimated that it has to deliver it at the beginning of February, so that it will be published in March. So far, the company accumulates an operating loss of US $ 1.46 billion, which grows if the interest payment is taken into account.
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source https://pledgetimes.com/after-the-initial-failure-ypf-improved-the-offer-to-try-to-seduce-creditors/
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