EDEMSA Reveals Initial Results from Debt Tender Offer and Settlement Decision
EDEMSA Announces Early Tender Results
Introduction
On June 4, 2026, Empresa Distribuidora de Electricidad de Mendoza S.A. (EDEMSA) revealed the initial results of its debt tender offer alongside a concurrent consent solicitation. This announcement comes in line with their earlier initiative aimed at acquiring all outstanding 9.75% Step-up Notes due in 2031. The intent is not only to consolidate debt but also to simplify the covenant structure associated with these notes.
Details of the Offer
EDEMSA's tender offer allows holders of the Existing Notes to sell their bonds back to the company for cash. As of the early tender deadline on June 3, 2026, EDEMSA received substantial submissions from bondholders, with an acceptance rate of approximately 84.1% of the total outstanding notes. This indicates strong confidence from investors in conditionally participating within the reached thresholds.
| Title of Existing Notes | ISINs/CUSIP Numbers | Outstanding Amount | Amount Tendered | Early Offer Consideration |
|---|---|---|---|---|
| ----- | ---- | ---- | ---- | ------- |
| 9.75% Step-up Notes due 2031 | 144A CUSIP No. 29245HAG1 | U.S.$150,000,000 | U.S.$126,145,000 | U.S.$1,000 |
EDEMSA's proposal includes enhancing the terms associated with the Existing Notes by eliminating stringent covenants, easing operational constraints, which is anticipated to yield favorable results in future financing endeavors.
Key Dates and Phases
Moving towards the early settlement date of June 11, 2026, EDEMSA will execute a Supplemental Indenture to confirm the proposed amendments approved through the consent solicitation. Holders of Existing Notes that participate in the tender offer will receive accrued interest from the last payment date through the expected early settlement. Notably, the cash offer stands at U.S.$1,000 per each U.S.$1,000 principal amount validly tendered by the deadline, signifying a calculated incentive for bondholders to accept.
Final Settlement Outlook
The overall tender offer is set to conclude at 500 p.m. on June 18, 2026, marking the final deadline for submissions. Any notes accepted post-early tender deadline will be settled later, on June 23, 2026. The company is eager to see a complete buy-back of its existing notes, reinforcing its liquidity position and flexibility in adjusting interest obligations, as well as preparing for potential future growth.
Conclusion
This strategic move underlines EDEMSA's commitment to financial management and refinancing efforts, ensuring the company remains responsive to market conditions. Stakeholders are encouraged to stay informed through their official channels, as additional updates and instructions about the tender offer process continue to be shared. This initiative not only reflects the proactive approach of EDEMSA but also enhances the attractiveness of its financial mechanisms for current and prospective investors.
For any inquiries related to the offer, parties may contact Banco BTG Pactual S.A., BofA Securities, Inc., or UBS Investment Bank, as the associates overseeing the process, encouraging investors to explore and maximize their participation before the final deadline.
Topics Financial Services & Investing）
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