Linklaters’ LatAm Team Advises on $890 million Bond Issue for The City of Buenos Aires

The City of Buenos Aires turned to Linklaters and local Argentinian firms Muñoz de Toro and Bruchou for its recent issuance of US$890m 7.5% notes (due 2027) pursuant to its US$2.29b MTN Programme. A portion of the proceeds of this issue will be used by the City to purchase US$239.7 million of the principal amount of its Series 10 Notes pursuant to a cash tender offer that expired on May 23, 2016, with the balance used to finance the City’s infrastructure projects.

The transaction closed on June 1, 2016.

Capital Markets partner and co-head of Linklaters’ LatAm practice, Conrado Tenaglia said:

“This issuance is significant in that it marks the return of the City of Buenos Aires to the international capital markets following the resolution of the conflict between Argentina and its holdout creditors. This was reflected in a substantially lower coupon than the City had been able to obtain previously and than those obtained by other sub-sovereigns in the country, confirming its status as one of the best Argentine credits. The contemporaneous cash tender offer for its 2017 bonds also allowed the City to extend the maturity profile of its debt.”

Merrill Lynch, Pierce, Fenner & Smith Incorporated, Deutsche Bank Securities Inc. and HSBC Securities (USA) Inc. acted as Joint Book-Runners. The Bank of New York Mellon acted as trustee, principal paying agent, transfer agent, registrar, custodian and common depositary.

Linklaters and Bruchou provided counsel to the Joint-Book Runners. Muñoz de Toro provided counsel to the City of Buenos Aires.

The Linklaters team who advised on the transaction included New York partners Conrado Tenaglia and Matt Poulter; former New York associate Guzmán Rodriguez Carrau; London Counsel Paulette Mastin and London associate Christopher Sanderson.