Cleary on Telecom Argentina Notes Offering
Cleary Gottlieb has advised Telecom Argentina (Telecom) on its offering of $500 million 9.500% senior redeemable senior notes due 2031 (new money notes), together with a capped cash tender offer and a capped exchange offer.
The new money notes were offered in a private placement in the US pursuant to Rule 144A and outside the US pursuant to Regulation S. The issue was launched on 8 July, priced on 11 July and closed on 18 July.
The related transactions consist of a cash tender offer for up to $100 million of Telecom’s 8.500% callable senior notes due 2025. The closing date for the tender offer is expected to be 19 July 2024 and the final maturity of the offer is expected to be 5 August 2024.
Following the pricing of the new notes, Telecom launched an offer to exchange up to $200 million of the 8.000% senior notes due 2026 for 9.500% callable senior notes due 2031. The exchange offer was launched on 11 July 2024, the early participation deadline is expected to occur on 24 July 2024, and the final maturity of the offer is expected to occur on 8 August 2024.
Deutsche Bank Securities, J.P. Morgan Securities Santander US Capital Markets, BBVA Securities, BCP Securities, Latin Securities, Agente de Valores, and UBS Securities LLC acted as dealer managers for the public offering and the exchange offer, and as initial purchasers for the offering of the newly issued notes.
Telecom is a leading telecommunications company in Argentina, where it offers its customers “quadruple play” services, combining mobile, cable television, internet, and fixed telephony services, among others. Telecom also offers mobile, internet, satellite TV, and other services in Paraguay, cable television services in Uruguay, cybersecurity services in Chile, and fixed wholesale services in the U.S.
Cleary’s corporate team included partner Adam Brenneman (pictured), associates Laura Daugherty, Samson X. Lim, Michael Obuchi, and Nicole Mueller, and law clerks Mauricio Nieto and Omelebele (Bele) Edeoga. Partner Matthew Brigham, along with associates Kelsey Barthold and Kathy Zhang, advised on tax matters. Partner Amber Phillips and associate Anna Bintinger advised on regulatory matters, and associate Samuel Chang advised on sanctions matters – all three are based in Washington, D.C. All other lawyers are based in New York.
