IRSA Inversiones y Representaciones S.A. announces its Exchange offer for Series I Notes under Resolution "A" 7106 of the Argentine Central Bank

Rhea-AI Summary

IRSA Inversiones y Representaciones S.A. (NYSE: IRS) announced an exchange offer for Series I Notes amounting to USD 181.5 million due on November 15, 2020. This decision follows Argentina's Central Bank Resolution 'A' 7106, which limits access to the foreign exchange market for debt payments. The exchange process includes issuing Series VIII and IX Notes, each with a 10% annual interest rate. The deadline for the Exchange Offer is November 5, 2020, with settlement expected on November 11, 2020.

Positive

• Initiating an exchange offer could help manage debt obligations effectively.
• Issuance of new notes reflects the company's strategy to refinance existing debt.

Negative

• Dependence on foreign exchange market access poses refinancing risks.
• Existing notes maturing soon increases financial pressure.

BUENOS AIRES, Argentina, Oct. 23, 2020 /PRNewswire/ -- IRSA Inversiones y Representaciones S.A. (NYSE: IRS; BYMA: IRSA), Argentina's leading Real Estate company, informs that according to Resolution "A" 7106 of the Central Bank of the Argentine Republic that restricts access to the Foreign Exchange Market to purchase US dollars for the payment of foreign currency-denominated debt securities principal maturing between October 15, 2020 and March 31, 2021, the Company announces the beginning of the exchange offer process for Series I Notes for an amount of USD 181.5 million, maturing on November 15, 2020 and the issuance of two new Series of Notes (the "Exchange Offer").

SERIES VIII DOLLAR-DENOMINATED NOTES, ACCRUING INTEREST AT A FIXED NOMINAL RATE OF 10.00% PER ANNUM AND MATURING 3 YEARS AFTER THE DATE OF ISSUE AND SETTLEMENT, TO BE AMORTIZED ON AN ANNUAL BASIS, IN A PRINCIPAL AMOUNT UP TO U$S 108,911,224 (THE "SERIES VIII NOTES" OR "SERIES VIII"), TO BE PAID IN KIND BY TENDERING FOR EXCHANGE THE OUTSTANDING SERIES I NOTES, ACCRUING INTEREST AT A FIXED RATE OF 10% PER ANNUM, MATURING ON NOVEMBER 15, 2020 (THE "EXISTING NOTES"), INCLUDING REPAYMENT OF PRINCIPAL AMOUNT OF EXISTING NOTES TO BE TENDERED FOR EXCHANGE IN CASH IN UNITED STATES DOLLARS OF AT LEAST 40% OF THE AMOUNT OF EXISTING NOTES TO BE TENDERED FOR EXCHANGE.

SERIES IX DOLLAR-DENOMINATED NOTES, ACCRUING INTEREST AT A FIXED NOMINAL RATE OF 10.00% PER ANNUM AND MATURING ON MARCH 1, 2023, IN A PRINCIPAL AMOUNT UP TO U$S 108,911,224, THAT MAY BE INCREASED UP TO THE MAXIMUM AGGREGATE PRINCIPAL AMOUNT (THE "SERIES IX NOTES" OR THE "SERIES IX", AND JOINTLY WITH SERIES VIII, THE "NOTES"), TO BE PAID IN KIND BY TENDERING FOR EXCHANGE THE EXISTING NOTES, OR IN CASH IN UNITED STATED DOLLARS (THE "SUBSCRIPTION IN CASH").

CONSENT SOLICITATION IN RESPECT OF THE PROPOSED AMENDMENTS TO THE TERMS OF THE EXISTING NOTES PURSUANT TO THE TERMS OF THE SUPPLEMENTAL EXCHANGE OFFERING MEMORANDUM. THOSE INTERESTED PARTIES THAT EXCLUSIVELY PARTICIPATE IN THE EXCHANGE OFFER REPRESENT AND WARRANT THAT THEY HAVE OBTAINED DUE INFORMATION IN ADVANCE AS WELL AS THE RIGHT TO DECIDE ON THE PROPOSED AMENDMENTS; ACCORDINGLY, THEY RENDER THEIR CONSENT TO THE IMPLEMENTATION OF THE PROPOSED AMENDMENTS TO THE TERMS OF THE EXISTING NOTES AND ARE FULLY AWARE OF ANY IMPLICATIONS ENTAILED THEREIN, FURTHER ACKNOWLEDGING THAT THE FACT THAT CONSENTS MAY BE OBTAINED WITHOUT THE NEED OF A BONDHOLDERS´ MEETING REPRESENTS A VALID METHOD FOR THE ADOPTION OF THE PROPOSED AMENDMENTS. THEY REPRESENT AND WARRANT THAT, BY TRANSFERING THE EXISTING NOTES TO THE EXCHANGE AGENT, THEY SIMULTANEOUSLY AND EXPRESSLY RENDER THEIR CONSENT TO ALL AND ANY AMENDMENTS PROPOSED BY THE COMPANY TO THE ORIGINAL TERMS AND CONDITIONS FOR THE ISSUE OF THE EXISTING NOTES.

The Exchange Offer closing date will be November 5, 2020 and settlement will take place on November 11, 2020. Early bird for Series IX ends on October 30, 2020.

The Exchange Offer, the Notes and all the documents related to the Exchange Offer shall be governed by and construed in accordance with the laws of Argentina.

Dealers
BACS Banco de Crédito y Securitización S.A.   Tucumán 1, 19th Floor, "A", City of Buenos Aires, Argentina		Banco Hipotecario S.A.   Reconquista 151, City of Buenos Aires, Argentina		Banco de Galicia y Buenos Aires S.A.U.   Tte. Gral. Juan Domingo Perón 407, City of Buenos Aires, Argentina	Banco Santander Río S.A.   Av. Juan de Garay 151, City of Buenos Aires, Argentina		AR Partners S.A.   Arenales 707, 6th Floor, City of Buenos Aires, Argentina
Banco de la Provincia de Buenos Aires   San Martin 108, City of Buenos Aires, Argentina	Balanz Capital Valores S.A.U.   Av. Corrientes 316, 3rd Floor, Office 362, City of Buenos Aires, Argentina		Puente Hnos. S.A.   Tucumán 1 14th Floor, City of Buenos Aires, Argentina			Bull Market Brokers S.A.   Bouchard 680 8th Floor, City of Buenos Aires, Argentina		SBS Trading S.A.   Av. Eduardo Madero 900, 19th Floor, City of Buenos Aires, Argentina

For more information, refer to the Issue Prospectus, Supplemental Exchange Offering Memorandum and Subscription Notice, available in the company´s website www.irsa.com.ar.

Investor Relations Department
IRSA Inversiones y Representaciones S.A.
+ 5411 4323-7449
ir@irsa.com.ar 
www.irsa.com.ar 
Follow us on Twitter @irsair

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SOURCE IRSA Inversiones y Representaciones S.A.