AySA managed to exchange more than 95% of its debt in dollars that expired in 2023

Aysa refinanced until 2026 debt that expired next year

The utility company AySA obtained a high acceptance of its refinancing from a debt for USD 500 million, with the incentive of a cash payment for creditors who accepted the offer, they told infobae sources with knowledge of the operation.

The state firm specialized in granting drinking water and sewerage treatment for the city of Buenos Aires and 26 suburban Buenos Aires districts carried out a prior check-up among large investors with the idea of ​​concluding as soon as possible an operation whose first stage closes today, December 8, with an acceptance of more than 95%. percent.

Malena Galmarinipresident of AySA, expressed: “We are more than satisfied because it is an assessment of the company and a recognition of the economic stabilization process in Argentina.”

“Furthermore, it fills us with satisfaction to know that in December of next year we are going to deliver an economically sound company with the completion of historic works that were stopped for many years and with enormous growth of users with better services,” he added.

“Is about Negotiable Obligations in dollars launched in 2017, through an interesting refinancing for investors, since around 80% is in the hands of private banks and institutional investors, who endorse the exchange, who will benefit from the proposal towards the 95% acceptance floor total”, sources related to the operation had told Reuters before the operation.

The exchange offer and request for Consent was made in accordance with the regulations of the Central Bank, in full force of a strict exchange rate to prevent the flight of dollars, which requires companies to refinance part of their payments to have access to the exchange market. and thus face the rest of its obligations. Thus, AySA offers the minimum cash payment for 35% of the bond to those creditors who have agreed to the proposal to date.

“We are more than satisfied because it is an assessment of the company and a recognition of the economic stabilization process in Argentina” (Galmarini)

Creditors who adhere from December 9 to the 19 of the same month will receive 30% in cash, according to the prospectus for the operation.

The creditors participating in this restructuring will also be paid the accrued interest and will receive a new bond that will be amortized 5% in November 2023, four installments of 20% in May and November 2024 and 2025, and 15% in May 2026.

Malena Galmarini, president of AySA
Malena Galmarini, president of AySA

The interest rate of the new bond was at 7.9% annual nominal.

Simultaneously with the exchange offer, AySA requested the consent of a simple majority of creditors to have the possibility of using the Extrajudicial Preventive Agreement (APE), without this being an event of default. For this operation, it is necessary to exceed 50% of the creditors and the acceptance was well above that percentage.

This tool would allow the terms agreed with a majority of them to be extended to all creditors. That is to say, there would be no room forholdouts”, the minority that did not adhere to the operation will be subject to the same conditions agreed upon by those who entered into the swap, although under less favorable conditions.

Creditors will receive an exchange ratio – applied to the original amount of the current bond minus the cash payment to be received – of 99.75%, while those who did not give it will have an exchange ratio of 99%, explains the official brochure. of the plan.

A group of creditors holding approximately 80% of the bond had already anticipated their support for the exchange offer and the Consent.

They were advisers of the operation daniel marx and its consultancy Quantum; Bank of America, Javier Timerman’s AdCap, and HSBC Bank.

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