EDEMSA Launches Tender Offer for 9.75% Notes and Seeks Consent for Amendments

EDEMSA Launches Tender Offer for 9.75% Bonds

On May 20, 2026, Empresa Distribuidora de Electricidad de Mendoza S.A. (EDEMSA S.A.) made a significant announcement regarding its financial strategy. The company has initiated an offer to purchase any and all of its outstanding 9.75% Step-up Notes which are due in 2031, alongside a concurrent solicitation for consent to amend certain provisions within the governing documents of these notes.

Overview of the Tender Offer

EDEMSA's tender offer aims to acquire its existing Step-up Notes, amounting to a total outstanding principal of $150 million. The company offers a tender consideration of $950 for notes validly tendered after the early deadline or a higher amount of $1,000 for those tendered before it. Through this move, EDEMSA aims to improve its debt maturity structure while simultaneously offering an attractive opportunity for noteholders.

Key Details of the Offer

The initiative allows holders of the 9.75% Step-up Notes to either participate by tendering their notes or providing consent to proposed amendments that aim to eliminate many restrictive covenants in the indenture governing these notes. The consent solicitation reflects a strategic effort to streamline existing agreements, allowing for greater operational flexibility moving forward.

To facilitate this process, EDEMSA has laid out a clear timeline. The early tender deadline is set for 5:00 PM New York City time on June 3, 2026, which will provide the highest tender offer consideration. The overall expiration of the offer is slated for 5:00 PM on June 18, 2026, unless extended or terminated earlier.

Consent for Proposed Amendments

In conjunction with the tender offer, EDEMSA seeks the approval of more than 50% of existing noteholders to consent to a resolution that would provide relief from certain covenants. This step is crucial in executing a supplemental indenture that will facilitate the company's debt management strategy. Existing notes holders must note that tendering their notes is a prerequisite for delivering consent, indicating the intertwined nature of these actions.

Important Considerations for Investors

Investors are encouraged to carefully evaluate the terms and potential benefits of the offer as articulated in the Offer and Solicitation Statement dated May 20, 2026. They should also consider the implications of participating in the tender offer, especially given that participation can impact the overall leverage and maturity profile of EDEMSA’s existing obligations.

EDEMSA collaborates with Morrow Sodali International LLC as the information and tender agent, alongside Banco BTG Pactual S.A., BofA Securities, and UBS Investment Bank serving as dealer managers for the offer.

Conclusion

EDEMSA's proactive approach in managing its outstanding debt reflects a broader strategy to fortify its financial standing while adapting to the ever-changing market environment. By facilitating this tender offer and soliciting consents, the company aims to create a more sustainable financial future, allowing it to respond to both operational needs and strategic growth opportunities effectively.

For more information regarding this tender offer, holders of the existing notes can visit the dedicated tender offer website or contact the designated representatives of EDEMSA's advisory team for guidance and support.