City of Buenos Aires Moves to Purchase Series 12 Notes
City of Buenos Aires Announces Tender Offer for Series 12 Notes
The City of Buenos Aires has initiated an offer to purchase up to U.S. $550,000,000 in aggregate principal amount of its 7.500 per cent Series 12 Notes due 2027. This tender offer marks a strategic move by the city to manage its debt effectively and enhance its financial position.
Details of the Tender Offer
Known as the "Offer," this initiative allows holders of the Series 12 Notes to tender their notes for cash. The city's financial strategy includes leveraging a continuous financing program, which amounts to $2,290,000,000 through a Medium Term Note Programme. A portion of the proceeds from the new Series 13 Notes will potentially finance this purchase.
Conditions for Participation
Notably, participation in this Offer does not require a minimum number of tenders from Series 12 Noteholders. However, it is contingent upon completing a few conditions, including the successful closing of the upcoming Series 13 Notes offering and meeting requirements detailed in the Offer to Purchase.
Important Offer Terms
The tender period is slated to start immediately and will remain open until January 9, 2025. The city maintains the right to extend or terminate this Offer at its discretion. It is expected that the settlement of purchased notes will occur around January 17, 2025.
Purchase Price and Interest Payments
Holders of the Series 12 Notes who participate in the Offer will receive U.S. $1,015 for each U.S. $1,000 principal amount of the Series 12 Notes. Additionally, they will earn any accrued interest from the last payment date until the settlement date.
How to Tender Your Notes
For those interested in participating, the tender process is straightforward. Holders must place their Tender Orders for a minimum amount of U.S. $200,000, adhering to specific increments. Those orders not meeting these criteria will unfortunately not be accepted.
Dealing with Proration
In scenarios where the total tendered amount exceeds the maximum tender amount, proration will occur. This ensures that all accepted tenders will equal the maximum amount sought, which may involve adjusting or rejecting tenders based on proportionality.
Dealer Managers and Support
The city is collaborating with several reputable Dealer Managers to facilitate this Offer. Interested parties can reach out to them for any queries relating to the tender process.
Frequently Asked Questions
1. What is the purpose of the City of Buenos Aires' tender offer?
This tender offer aims to manage the city's debt by repurchasing its Series 12 Notes, which allows them to improve their financial standing.
2. How much is the city willing to spend in this Offer?
The city intends to spend up to U.S. $550 million to repurchase the Series 12 Notes from existing holders.
3. What are the key dates for this tender offer?
The Offer commenced recently and is set to close on January 9, 2025, with settlements expected on January 17, 2025.
4. Are there any minimum requirements for participating in the Offer?
No minimum participation levels are required, but individual Tender Orders must meet a minimum threshold of U.S. $200,000.
5. Who can assist me with queries regarding this Offer?
The Dealer Managers associated with the Offer are available to answer questions, and they can be contacted via their provided telephone numbers.
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