#Argentina #Step Up Notes #Chubut #Chubut Province #Secured Amortizing

The Province of Chubut Announces Purchase Offer

On April 20, 2026, the Province of Chubut, located in Argentina, revealed its intention to initiate a cash purchase offer concerning its U.S. Dollar Step Up Secured Amortizing Notes due in 2030. This strategic move allows registered holders of these notes to participate and receive a cash payment, enhancing liquidity for investors holding these assets.

Details of the Offer

The Province has established this offer (referred to as "the Offer") to acquire the outstanding notes from registered holders, providing an option to tender their existing notes for cash. The offer is structured so that the maximum cash amount, referred to as the "Maximum Purchase Price," will be determined solely at the discretion of the Province. This cap on the purchase price will not include any interest accrued on the notes that has not yet been paid.

Key Terms and Conditions

While the Offer does not hinge on a minimum level of participation from note holders, it is dependent on the successful concurrent issuance of new global notes (termed "New Notes"). The New Notes must have a principal amount sufficient to finance the Offer, with terms favorable to the Province. Importantly, the Offer Document issued on April 20, 2026, contains specifics and investment conditions, which potential participants are urged to review carefully.

For each U.S. $1,000 of original principal in the existing notes that are accepted for purchase under the Offer, holders can expect a fixed purchase price. This will also include accrued interest from the last paid date up to the settlement date, ensuring that participants are fairly compensated for their investments.

Timelines and Important Dates

The Offer commenced on April 20 and is set to expire at 5:00 PM New York City time on April 24, 2026, unless extended by the Province. Holders will have the option to withdraw their tender offers until the expiration time, ensuring they retain control over their investment decisions. The settlement for accepted offers is slated for April 29, 2026. It should be noted that to participate, existing notes can only be tendered in multiples starting from U.S. $150,000.

The Role of Dealer Managers and Tender Agents

Morrow Sodali International LLC acts as the Information and Tender Agent for this Offer. They are responsible for managing communications and submissions related to the Offer. J.P. Morgan Securities LLC and Santander US Capital Markets LLC have been designated as Dealer Managers, assisting in facilitating the offer process and helping potential investors understand their options.

Implications for Existing Note Holders

This initiative showcases Chubut's proactive approach in managing its debt and providing its investors with an attractive opportunity to liquidate their existing notes for cash. By allowing holders to engage in this Offer, the Province aims not only to improve its financial positioning but also to foster investor confidence in its financial stability.

As the April 24 deadline approaches, potential participants should ensure they communicate effectively with their brokers or financial representatives to meet all required submission timelines. The right to modify or terminate the Offer remains solely with the Province, underlining the importance of following any updates released by the financial authorities.

Conclusion

The Province of Chubut's cash purchase offer is a significant event for current holders of the 2030 secured notes. With favorable terms and clear instructions provided through the Offer Document, stakeholders are encouraged to act promptly. This move represents a vital aspect of Chubut’s fiscal strategy, enabling effective management of its financial commitments while potentially providing liquidity options for investors involved. It's advisable for all participants to stay informed on the developments surrounding the Offer for optimal decision making.