Jujuy Province’s $210 Million Debt Restructuring

Holland & Knight LLP advised the Argentine Province of Jujuy on the deal.

The Argentine Province of Jujuy announced the restructuring of $210 million in foreign debt through a solicitation of consents to amend its 8.625% notes due 2022. Bondholders representing approximately 92.45% of the principal amount of the notes outstanding delivered their consents, which allowed the application of the collective action clauses in the indenture to modify all notes. The deal closed on March 19.

The existing bonds, issued in 2017, were due in 2022 and carried an 8.625% coupon. The restructuring adds another four and a half years to the bonds’ maturity and cuts their interest rate, incorporating a coupon step-up structure. The province will pay 5.25% interest through September 2021 and 5.75% interest through March 2022, after which the interest will gradually increase to 8.375%.

Jujuy, which is in northwestern Argentina, is the fourth province to restructure foreign debt in 2021. The Argentine provincial debt restructurings began after the federal government renegotiated its international debt worth some $65 billion with bondholders in September 2020.

The Holland & Knight team representing Jujuy was led by Partner Stephen Double (Picture), Associates Maria De Bedout and Julia de la Parra and Foreign Associate Pablo Godoy in New York.

Involved fees earner: Maria de Bedout – Holland & Knight; Julia de la Parra – Holland & Knight; Stephen Double – Holland & Knight;

Law Firms: Holland & Knight;

Clients: Province of Jujuy;

Author: Martina Bellini