#Argentina #Buenos Aires #CLISA #Redeemable Notes #Step-Up Notes

CLISA Announces New Redeemable Notes Issuance

In a significant move aimed at restructuring its financial obligations, CLISA – Compañía Latinoamericana de Infraestructura y Servicios S.A. has announced the issuance of $70 million in new redeemable notes due in 2034. This financial maneuver is part of a broader strategy to comply with current step-up notes indenture obligations and address the evolving needs of its investors. Scheduled for issuance on May 14, 2025, the notes will be distributed to holders of CLISA’s existing step-up senior secured notes due in 2034.

Key Details of the Transaction

The $70 million redeemable notes are being issued under compliance with the terms outlined in a consent solicitation that concluded on December 19, 2024. This solicitation led to an amendment of certain conditions related to existing step-up notes. These amendments included a reduction of the total principal of the step-up notes to $270 million, alongside an extension of their maturity date—$200 million due on December 10, 2031, and $70 million due on December 10, 2034.

Notably, CLISA will not collect any cash proceeds from this issuance. Instead, the new notes will be allocated on a pro-rata basis to current holders of the step-up notes as of the record date, anticipated to be May 13, 2025. This means investors don’t need to take any additional action to receive the new redeemable notes they are entitled to.

Impact on Existing Notes

In conjunction with the issuance, the trustee for the step-up notes will diminish the outstanding principal by $70 million, recalibrating each investor's interest in the step-up notes based on their holdings as of the record date. Following this adjustment, the remaining outstanding principal of the step-up notes will equal $200 million, with a complete maturity scheduled on December 10, 2031.

Interest and Redemption Terms

The redeemable notes carry an annual interest rate of 7%, accruing from December 10, 2024. Payments will be made biannually, specifically on June 10 and December 10, starting from June 2025. Furthermore, redemption terms have been set, allowing CLISA to redeem these notes in whole but not partially, under specified conditions that range from 32.35% to 102.35% based on the timeline until their maturity in 2034.

About CLISA

Founded over 115 years ago, CLISA stands as an integral player in Argentina’s infrastructure sector, executing projects across construction, waste management, transportation, and water supply services. The company's dedication to enhancing public infrastructure aligns with its responsibility towards both governmental and private sector needs, positioning it as a versatile entity in the region's developmental landscape.

In summary, the issuance of the $70 million redeemable notes represents a critical step for CLISA in solidifying its financial foundation. Through these notes, CLISA aims to enhance its operational stability while simultaneously complying with the commitments made to its current investors. As CLISA navigates these complexities, the focus remains firmly on sustaining growth and meeting the infrastructural demands of its clientele.