Firm’s Capital Markets practice continues strong presence across Latin America with several notable transactions in Argentina
Milbank, Tweed, Hadley & McCloy LLP continues to have a strong presence across Latin America despite volatile political and market conditions, including several recent notable transactions in Argentina, which recently returned to the international capital markets.
Marcelo Mottesi, chair of Milbank’s Global Capital Markets practice, remarked: “The economic outlook in Argentina has been especially challenging given its exclusion from the capital markets until recent months. We are pleased to take part in the inflow of new issuances coming from Argentina and expect the market to remain active.”
“We’re pleased to have advised on several milestone offerings as Argentina returned to the international markets, including in connection with the financing of one of the country’s largest acquisitions in recent years (Pampa's acquisition of Petrobras Argentina) , and on the first peso-linked issuance in 10 years for energy company YPF,” added Carlos Albarracín.
Details on Milbank’s recent transactions include:
- Represented Merrill Lynch, Pierce, Fenner & Smith Incorporated, BNP Securities Corp., Puente Corredor de Bolsa S.A. and UBS Securities LLC, as initial purchasers, in the $650 million Rule 144A/Reg S bond offering of 7.750% Secured Amortizing Notes due 2026, issued by the Province of Chubut in Argentina. In May, Milbank represented the initial purchaser in the Province of Chubut's $50 million Rule 144A/Regulation S bond offering of 8.875% Secured Amortizing Notes due 2023. These two deals are guaranteed by oil and gas royalties and are the first international capital markets transactions for Chubut since 2010.
- Advised the deal managers in connection with Petrobras Argentina S.A.’s US$500 million 7.3575% bonds due 2023 issued in order to tender the company’s existing $300 million 5.875% bonds due 2017. Milbank also represented the lead arrangers in the US$450 million and AR$2,205 million syndicated bridge loan facility to finance in part Pampa Energía S.A.’s acquisition of approximately 67% stake in Petrobras Argentina S.A. from Brazilian state-run oil company Petroleo Brasileiro S.A. (Petrobras).
- Represented the initial purchasers in the $250 million offering of Subordinated Resettable Notes Class II due 2026 by Banco de Galicia y Buenos Aires S.A.
- Represented the initial purchasers in the Rule 144A/Reg S issuance of $750 million in high-yield notes by YPF Sociedad Anónima, the leading Argentine fuel exploration and production company. The 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.
- Advised the initial purchasers in the US$725 million offering of 7.125% notes due 2021 by the Province of Córdoba in Argentina and concurrent tender offer for outstanding notes of the Province.
