Deal represents first Rule 144A issuance of peso-linked notes in 10 years and the first ever with floating-rate interest based on the BADLAR rate in effect in Argentina
In its latest representation involving major Argentine vertically integrated energy company YPF Sociedad Anónima, law firm Milbank, Tweed, Hadley & McCloy LLP advised BBVA Securities Inc. and Santander Investment Securities Inc. in YPF’s Rule 144A/Reg S issuance of US$750 million in high-yield notes, due 2020.
Milbank Global Capital Markets partner Carlos Albarracín and associates Cora Fanning and James Ganley, in New York, and Felipe Camara, in São Paulo, Brazil led the Milbank team in the transaction, in which YPF issued the peso-linked notes, payable in dollars based on the initial peso-dollar exchange rate, with interest calculated according to Argentina’s BADLAR floating rate, which is unique in the international markets. It has been at least 10 years since the last Argentine Peso-linked deal and the first international deal with reference to the BADLAR.
“Milbank is very pleased to advise on another milestone offering involving YPF,” Mr. Albarracín said. “Global investor response to this unique issuance demonstrates widespread interest in not only Argentina’s leading energy company YPF but in Argentina overall as an investment destination as well.”
Milbank has previously advised on a number of significant YPF debt transactions, including the company’s 2015 offering of $1.5 billion in 10-year notes, the largest corporate bond issuance on record out of Argentina; which in less than 3 years has
raised over US$5 billion in the international markets.
State-owned YPF, Argentina’s largest oil company, is engaged in the exploration and production of hydrocarbons as well as the refining and distribution of chemical and petrochemical products.
About Milbank
Milbank, Tweed, Hadley & McCloy LLP is a leading international law firm that provides innovative legal services to clients around the world. Founded in New York 150 years ago, Milbank has offices in Beijing, Frankfurt, Hong Kong, London, Los Angeles, Munich, São Paulo, Seoul, Singapore, Tokyo and Washington, DC.
Milbank’s lawyers collaborate across practices and offices to help the world’s leading commercial, financial and industrial enterprises, as well as institutions, individuals and governments, achieve their strategic objectives.
