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ECONOMY | 30-07-2021 21:06

Argentina’s Edenor wins creditor support to avoid early payout

Bondholders accepted company’s cash offer to waive bond clause. Creditors to receive one-time payout of US$20 per US$1,000 in notes.

Argentina’s largest power distributor, Edenor, won approval from its creditors to waive a key bond clause, allowing the utility to avoid paying back its bond early after a change in company ownership.

Edenor’s bondholders voted to accept the company’s offer to waive the rule in exchange for a cash payment, according to a statement from the company. Participating creditors will receive a one-time payment of US$20 for every US$1,000 of notes they own, and the waiver agreement will apply to all holders of the bonds, even those who did not deliver their consent on the proposal, according to the statement.

Edenor, formally known as Empresa Distribuidora y Comercializadora Norte SA, was seeking to scrap a change-of-control clause that would have required it to pay back its $98 million of overseas bonds about a year before they are set to mature in October 2022. The offer succeeded even though a group of bondholders panned the proposal leading up to its deadline.

Argentine oil and gas driller Pampa Energīa sold its controlling share of the company in December, triggering the change-of-control clause that allows bondholders to demand repayment.

Edenor’s new owners include Daniel Eduardo Vila and Integra Capital’s Jose Luis Manzano, who are co-owners of Grupo America, one of Argentina’s largest media companies. 

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by Scott Squires, Bloomberg

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