Although the closure was scheduled for Friday at midnight, YPF’s debt restructuring will have to wait. The company evaluates extending the acceptance period until Monday, as a step prior to having to launch a new exchange.
YPF seeks that the creditors give it the green light to modify the payment of an ON for US $ 413 million that it has to make on March 23. In return, he proposes to pay that money between 2023 and 2026. According to those familiar with the operation, acceptance would have been between 25% and 30%.
The acceptance period expired at 12 p.m. in New York this Friday, which is two in the morning in Argentina. YPF could communicate the result on Monday, but it was also studying to extend the term to Monday, according to comments from some creditors.
Everything indicates that YPF is heading towards its fifth modification in the exchange to creditors of a NO for US $ 413 million, as part of a program of US $ 6,226 million. The priority is the expiration of March 23. The Central Bank will not grant you the necessary dollars to make that payment. When it reinforced the stocks, in September, the entity ordered all companies to renegotiate the payment of their debts in dollars.
The action YPF fell more than 2% on Friday. Although it had a rebound this week – it reached 10%, after the dissemination of a report on good prospects for Vaca Muerta -, it is still 10% below the price it had a month ago, before the chapter of this new chapter of Debt.
A group of creditors, grouped in YPF Ad Hoc Bondholders, expressed their rejection of the operation. Blackrock and Fidelity excel there. Neither of these two investment funds – which also played an important role in the restructuring of sovereign debt – accepted the proposal of the oil company. They claim to represent 45% of creditors.
YPF offers to pay US $ 283 in cash for each sheet of US $ 1,000 of ON in its new proposal, when in the previous one it offered US $ 157. It was also eliminated that this “sweetener” in cash was only for creditors who enter first, and it became general.
Creditors demand more cash and some change in promised rates.
In its latest proposal, YPF announced that it will pay an interest rate of 4% from the understanding until 2023. From that moment, the rate goes to 9% (whereas before it was 8.5%). The repayment of the original capital is through 13 amortizations, from February 12, 2023 to 2026.
Opposition from these creditors would move the company away from the goal of closing a agreement. Restructuring experts assure that YPF needs 70% consent to modify the conditions, although in the previous exchange -in mid-2020-, the oil company advanced with 58% acceptance. At that point, he had reduced the $ 1 billion he had to pay in 2021 to $ 413 million.
YPF reported this week that it would not move from its offer. And that it had the adhesion of another group of bondholders, who accept the company’s new proposal, and assume they have 25% of the receivables.
Guillermo Nielsen, outgoing president of the company, expressed his disagreement to the Central Bank authorities before announcing that he will resign. The economist – who participated in the renegotiation of the 2001-02 default – had disagreements with the Central. This taxation would have carved into your decision. He will be replaced by Pablo González, former deputy governor of Santa Cruz and of the political kidney.
Alejandro Lew is YPF’s CFO (Finance Director) and the one who can best explain the attractiveness of the operation, according to investors.
“Through these amendments, the exchange offer improved significantly and is in line with the market proposal,” say some recommendations from investors, who see the company making an effort
YPF’s restructuring has ramifications for other companies that have debt incurred in dollars. The Central’s decision could affect the credit rating of more Argentine companies.
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source https://pledgetimes.com/ypf-prepares-an-exchange-proposal-that-generates-more-adherence-from-creditors/
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