#Senior Notes #Argentina #Buenos Aires #Generación Mediterránea #Central Térmica Roca

Generación Mediterránea S.A. Exchanges Senior Notes

On April 10, 2026, Generación Mediterránea S.A. (GEMSA) and Central Térmica Roca S.A. (CTR) made a significant announcement regarding their 9.625% Senior Notes due in 2027. The companies declared the initiation of an exchange offer, allowing holders of the existing notes the option to trade them for newly issued Fixed Rate Step-Up Senior Notes that are set to mature in 2036. This move is part of a broader strategy aimed at restructuring their debt under an out-of-court arrangement, known as the APE Solicitation.

Details of the Exchange Offer

The existing 9.625% Senior Notes have a total outstanding principal of approximately $117 million. Under this exchange, GEMSA and CTR plan to issue New Notes at the consideration of $724 for every $1,000 of Existing Notes. Importantly, this new issuance will include the capitalization of accrued and unpaid interest only up to a certain reference date, which simplifies the exchange by eliminating future interest claims.

The Offer and Solicitation will remain open until 5:00 PM EDT on May 8, 2026, with an early participation date set for April 23, 2026. Eligible holders who participate before this early date will receive a premium as an incentive. This initiative represents an essential step for the companies as they realign their financial obligations amidst changing market conditions.

Advantages for Eligible Holders

Eligible Holders, defined primarily as qualified institutional buyers, will not only benefit from exchanging their Existing Notes but will also play a pivotal role in shaping GEMSA and CTR's future through their active involvement in the APE Solicitation. This engagement includes granting replacement powers of attorney and providing voting instructions, ensuring holders have an integral voice in the restructuring process.

The early tender premium reflects the companies’ commitment to encouraging participation, acknowledging the risks they are placing on their existing investors. The additional compensation for engaging early underscores the significance of the input from these bondholders during this transformation.

Future Implications

The decision to offer new fixed-rate notes at a longer maturity could potentially enhance liquidity and financial stability for GEMSA and CTR. As the market evolves, this long-term view aims to position both companies more favorably against competitors and market fluctuations.

Conclusion

This exchange offer serves not only to manage current obligations but also aims to foster a stronger fiscal foundation for Generación Mediterránea S.A. and Central Térmica Roca S.A. Moving forward, the companies remain hopeful that engaging with their investors through this strategic restructuring will facilitate a smoother transition and a more stable financial future.