Linklaters has advised Arcor SAIC, one of the world's largest confectionary producers, on its debut international capital markets transaction - the establishment of a US$500 million Global Short and Medium Term Note Program and the global offering of US$200 million 7.25% Notes due 2017 under the Program.
The Argentine-headquartered company was able to raise funds more cheaply than most Argentine issuers (including the sovereign) as a result of its large international presence. Its operations in Brazil, the Andean Region and Mexico and its exports from Argentina have been seen by investors as evidence of Arcor's ability to access US dollars and repay foreign currency-denominated debt.
The proceeds of the offering, which was closed on 9 November and was several times over-subscribed, were used to refinance debt and for working capital purposes in Argentina. The Notes have been listed on the Luxembourg Stock Exchange and on the Buenos Aires Stock Exchange; the Program and the Notes were approved by the Comision Nacional de Valores prior to the Argentine public offering.
J.P. Morgan Securities LLC and Santander Investment Securities Inc. acted as Joint Lead Managers and BNP Paribas Securities Corp. acted as Co-Manager in the global offering of the Notes, and their Argentine affiliates acted as local placement agents in the public offering in Argentina.
The Linklaters team - which involved lawyers from New York, Sao Paulo and Madrid - was led by partner Conrado Tenaglia.
Conrado Tenaglia said:
"We are very pleased to have helped Arcor on its debut capital markets transaction. The market has received it extremely well and the pricing seems to reflect the strength of the company's international operations and its ability to generate foreign exchange combined with a leading position in the Argentine markets."
For further information, please contact: Rupert Winlaw on +44 20 7456 3219 or Sarah Peters on +44 20 7456 2153.
