Bloomberg News

Argentina’s YPF Offers to Buy Back Dollar Debt at Full Price

June 18, 2012

YPF SA (YPFD), the Argentine oil producer that was seized by the government in April, is offering to buy back dollar-denominated bonds after the takeover triggered a change-of-control clause in the securities.

Investors have until July 6 to exercise the put option on the debt due 2028 and will be paid at 100 cents on the dollar on July 20, according to a notice sent to holders dated June 1.

The price on the securities has risen 2.5 cents this month to 97 cents on June 15, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. Trace data show no trades today. YPF shares rose 1.3 percent today to 75.50 pesos at 4:43 p.m. in Buenos Aires.

A clause in the bonds’ prospectus says a put option may be exercised if the Argentine government takes control of 49 percent or more of the company’s outstanding stock. President Cristina Fernandez de Kirchner nationalized 51 percent of the company in April.

To contact the reporter on this story: Camila Russo in Buenos Aires at crusso15@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net


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