YPF Begins Tender Offer for Its Outstanding Senior Notes Due in 2025

YPF Launches Tender Offer for Senior Notes

YPF Sociedad Anónima, based in Argentina, has announced the commencement of a cash tender offer aimed at acquiring all of its outstanding 8.500% senior notes that are due in July 2025. The total principal amount of the notes outstanding is reported to be around $756.96 million. The offer, referred to as the "Tender Offer," is an important move for the company as it seeks to manage its debt obligations and financial strategy effectively.

Key Details of the Tender Offer

The tender process aims to purchase any and all outstanding notes specified under the offer. Investors holding these securities will have the chance to tender their holdings until the specified expiration time set for January 15, 2025, at 5:00 PM New York City time. The tender offer price is pegged at $1,019.50 for every $1,000 principal amount of notes, illustrating a premium that could attract investors to participate in the offer.

Conditions and Features

YPF emphasizes that the tender offer is subject to certain conditions as outlined in their official Offer to Purchase. One of the critical components of this tender is the concurrent or earlier completion of a new notes offering designed to provide adequate funds for fulfilling the obligations related to the tender offer. YPF has communicated its intention to potentially favor investors who indicate a wish to tender their notes before the new notes allocation is finalized.

The company expects that the settlement date for the tender offer will occur on or about January 17, 2025, thereby allowing a brief period for processing the tenders and payments owed to the participating holders.

Withdrawal and Preferences

Investors also have the option to withdraw their securities before the expiration time on January 15, 2025. This flexibility allows participants to reassess their involvement based on market conditions closer to the expiration date. Furthermore, YPF indicates that it may redeem any outstanding securities after the tender offer concludes, ensuring that there is a streamlined process for managing its financial obligations moving forward.

Detailed Information Access

For those interested in participating in the tender offer, more comprehensive details can be found in the Offer to Purchase documentation, which is available through D.F. King & Co., the designated information and tender agent for this process. They can be contacted via telephone or through their website for further inquiries.

Role of Dealer Managers

YPF has enlisted multiple financial institutions to serve as dealer managers for the tender offer. These include prominent names such as BBVA Securities Inc. and Deutsche Bank Securities Inc., alongside local dealer managers based in Argentina. Their roles will encompass not only managing the tender offer itself but also providing guidance and information to potential tendering holders.

Conclusion

The initiation of this tender offer is a significant step for YPF as it navigates the complexities of its financial commitments and aims at reinforcing its capital structure. Shareholders and investors are urged to carefully consider their options as the expiration date approaches, especially given the terms and potential outcomes associated with this tender offer.