CLISA Announces Successful Consent Solicitation for Senior Secured Notes Extension

CLISA's Consent Solicitation Results

CLISA (Compañía Latinoamericana de Infraestructura & Servicios S.A.) has announced the positive results of its latest consent solicitation regarding its Step-Up Senior Secured Notes maturing in 2027. As of the expiration date on December 17, 2024, an impressive 94% of the outstanding aggregate principal amount—totaling $336,576,550—have been validly consented. This strong backing from noteholders signifies significant market support for the company's ongoing strategy.

The consent solicitation aimed to gather approvals for various amendments to the existing notes, including a reduction of the aggregate principal amount to $270 million, an extension of the maturity date to December 10, 2031, and adjustments to interest rates and payment schedules. Additionally, this move will allow for the addition of new collateral, the strengthening of material covenants, and the introduction of a waiver for past defaults. Notably, CLISA has also committed to issuing the new Clisa-Only Redeemable Notes, enhancing the attractiveness of its offerings to investors.

The terms of these amendments were outlined in the Consent Solicitation Statement, which was made available on November 19, 2024. To streamline the process, CLISA waived the requirement for noteholders to submit Instruction Letters for consent submission, simplifying participation in the solicitation.

Eligible noteholders who consented will receive a total consent consideration of $25 million, to be proportionately distributed based on the amount of consent received, with payments expected by December 19, 2024. However, noteholders who did not consent will not be eligible for this consideration.

BCP Securities, Inc. and Santander US Capital Markets LLC facilitated the solicitation process outside Argentina, with Banco CMF S.A. acting as the local agent in Argentina. These firms provided essential guides and support to investors impacted by the amendments. Questions regarding the solicitations for noteholders both inside and outside Argentina can be directed to designated representatives from these banks, highlighting the accessible communication lines set up by CLISA.

This development forms part of a broader strategic approach by CLISA, which has been at the forefront of Argentinian infrastructure management for over 115 years. The company operates across various segments, including construction, waste management, transportation, and water supply services, focusing primarily on public sector projects.

As CLISA continues to navigate the evolving financial landscape, this consent solicitation signifies confidence from its noteholders and commitment towards achieving long-term financial sustainability. The underlying risks and uncertainties highlighted in CLISA's communications remain significant but underscore the company's proactive engagement with its investors in adapting to market conditions.

With a clear path set forth by these amendments, CLISA is poised to leverage its strengthened financial position to continue contributing to Argentina’s critical infrastructure projects, positively impacting its service capabilities and future opportunities for growth.

Conclusion

In summary, CLISA's successful consent solicitation reflects not only the robustness of its operational strategies but also the strong support of its noteholders, reinforcing its commitment to the infrastructure sector in Latin America. Going forward, CLISA aims to maintain transparency and engagement with its investors, ensuring alignment with stakeholder interests while pursuing ambitious infrastructure initiatives.