#Senior Notes #Exchange Offer #Argentina #Buenos Aires #IRSA

IRSA Launches Exchange Offer for 8.750% Senior Notes

IRSA Inversiones y Representaciones Sociedad Anónima has officially announced the initiation of an exchange offer for its outstanding 8.750% Senior Notes due 2028. This step is part of the company's strategy to enhance its financial structure and manage its debt profile more effectively.

The exchange offer allows eligible holders of the existing senior notes to tender their notes and receive in exchange new 8.000% Senior Notes due 2035. The total amount of the outstanding notes being offered for exchange is approximately US$141.2 million.

Key Details of the Exchange Offer

The exchange is designed to benefit holders who meet certain eligibility requirements as outlined in the Exchange Offer Memorandum released on March 10, 2025. Here are some important terms to note:

• - Existing Notes: 8.750% Senior Notes due 2028, CUSIPs 450047AH8/P58809BH9, with a total principal amount of US$141,242,322.38.
• - Exchange Consideration: Holders can receive US$1,040 in new notes for every US$1,000 of existing notes tendered before the Early Participation Date, set for March 24, 2025. After this date, the exchange consideration will be US$1,000 per US$1,000 of existing notes.
• - Expiration Date: The exchange offer will close at 5:00 PM NYC time on April 8, 2025, except where extended by IRSA at its discretion.

Why Participate?

This exchange opportunity is particularly attractive for holders looking for a secure investment with a relatively high yield of 8.000% compared to the existing 8.750%. By participating in this exchange, investors can also reduce their exposure to the earlier maturity date in 2028 by moving to notes maturing in 2035, thereby extending their investment horizon.

The company emphasizes that they will accept all existing notes tendered before the early participation cut-off, which creates an even greater incentive for early action. For investors concerned about market volatility and the potential for future interest rate changes, locking in a longer-term yield could prove beneficial.

Conditions and Withdrawals

To ensure a successful exchange, holders should be aware of specific deadlines. Withdrawals can occur anytime up until the withdrawal date of March 24, 2025. However, once the tender is made beyond this point, it cannot be rescinded.

Moreover, any accrued and unpaid interest on existing notes will be compensated during the exchange process. This addition strengthens the return for participants, providing a further financial incentive for engagement in the exchange.

Potential Risks and Considerations

While this offer may seem appealing, potential participants must also consider the risks associated with any bond investment. There is always a possibility that market conditions may change, affecting the overall liquidity and value of the new notes. Additionally, Argentine tax implications may impact hold times and financial gains during the exchange, depending on the profile of the holders.

Conclusion

IRSA's exchange offer represents a significant opportunity for eligible holders of its senior notes. With attractive considerations on offer and the potential for stabilizing their investment position, bondholders should carefully assess their options before the deadline.

For more information and to obtain the relevant documentation, holders are encouraged to visit the designated website provided in the Exchange Offer Memorandum or contact the appointed information and exchange agent.