YPF Revises Offer for The Third Time

Argentinian energy company YPF revised its restructuring proposal for the third time for its bonds worth $6.2bn. As part of the latest revision, investors will receive fewer 2026 bonds and more cash in the swap. YPF expects to reach a successful agreement with the majority of bondholders before the February 12 deadline. The acceptance deadline is February 8.

YPF’s first proposal on January 7, involved extending maturities, delaying interest payments and reducing near-term payments. The company needs to push back payments after the central bank said it would not give YPF the dollars it needed to pay holders of the $400mn bond due in March because of a shortage of hard currency in Argentina. The initial offer saw large holders of the 7 bonds in the swap block the restructuring proposal. YPF responded with an amendment on January 15, improving the conditions required to reach majority approval for the swap to 50% from the earlier 30%. In another amendment on January 26, YPF backed the 2026s by shares of its subsidiary, YPF Energia Electrica, as an added security for bondholders, who can sell the shares in case YPF defaults. YPF is asking investors to push back about $2bn of payments through the end of next year. With this, coupons through December 2022 would be set at 4% for the 2026s, 2.5% for the 2029s and 1.5% for the 2033s, substituting a two year grace period. Coupons from 2023 would increase to 9% from 8.5% for the 2026s and 2029s while the 2033s will continue to pay 7%. The restructuring is being done to free up cash to boost production in the shale-rich region of Vaca Muerta in Patagonia.

Prices on YPF’s 8.5% 2025 dollar bonds rose 6.7% since last Tuesday, rising from 77.83 to 83.47.

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