Province of Cordoba Restructuring

Completed Date

2021-02-02

Sector

Non sector specific

Deal Type

Debt restructuring

Value

$1.669m

Company bio

Ad Hoc Bondholder Group (the "Committee”) formed to address the restructuring of the Province of Cordoba’s (the "Province’s") US$1.669 billion of international bonds due 2021, 2024 and 2027 (the "Existing Notes").

Deal Summary

In September of 2020, the Province commenced discussions with bondholders regarding its external debt amid stated challenges related to the Argentine macroeconomic situation, limited access to capital markets, and disruption associated with COVID-19.

BroadSpan supported the formation of and advised the Committee, an experienced and highly effective group of institutional asset managers holding over 50% of the Existing Notes. An active dialog was initiated between the Province and the Committee, and the respective financial advisors. The Committee publicly stated its sensitivity to the pandemic-related challenges that the Province was facing but also its position that the terms of any restructuring needed to reflect the Province’s true repayment capacity and respect the contractual terms of the Existing Notes.

Over a five-month period, BroadSpan and the Committee conducted constructive negotiations with the Province and its financial advisors, resulting in five amendments to the Province’s original proposal. A final consensual agreement was reached on
January 11, 2021, resulting in the Province receiving aggregate consents of over 96%, triggering associated collective action clauses. Settlement of the transaction occurred on January 26, 2021. White & Case LLP acted as the Committee’s legal advisor.

Value Added to the Project

BroadSpan actively worked on behalf of the Committee to preemptively engage the Province’s with the objective of maximizing overall recovery, which resulted in the restructuring of the Cordoba Bonds, meeting the Committee’s expectations.

Deal Contacts

Michael Gerrard

Michael Gerrard's avatar

Managing Director

Noah Kessler

Noah Kessler's avatar

BroadSpan Capital is the exclusive Brazilian and Caribbean partner of Mergers Alliance

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