Argentina's Public Oil Company Aims To Restructure Its Debt

Argentina's state-owned company Fiscal Oilfields (YPF) on Monday announced a new deal to its creditors aiming to achieve debt refinancing, which should be done before the first group of bonds' deadline on March 23, 2021.

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On Jan 7, the oil company proposed to its private creditors to refinance most of its international foreign currency debt bonds maturing in 2021, 2024, 2025, 2027, 2029, and 2047.

"YPF has engaged in good faith discussions with eligible holders to establish the terms of their exchange offers," reads an official statement.

The Ad Hoc YPF Bondholder Group's members amounting to 45 percent of the 2021 bonds send a letter to YPF Executive Board in which they expressed their commitment to subscribe to the proposal if some terms were to be changed.  

"Bondholders who subscribe before Feb.10 will receive US$699 in 2026 secured notes and US$408 in cash for each US$1,000 in bonds," said YPF after reviewing their proposal. 

Those who accept the exchange after Feb. 10 will receive US$824 in new 2026 guaranteed notes and US$283 in cash for each US$1,000 in old bonds.

The Ad Hoc Group announced that it accepts the new offer "as it provides a balanced solution and an appropriate treatment for 2021 bonds".