Marval advises on new issue of Telecom Arg Notes
Marval O’Farrell Mairal has advised the international and local underwriters, and EGFA Abogados advised Telecom Argentina, in the issuance of a new class of notes, and in the exchange and repurchase of existing notes.
Telecom Argentina, within the framework of its global program for the issuance of notes for a nominal amount of up to USD 3,000,000,000,000 (or its equivalent in other currencies or units of value), on July 18, issued Class 21 notes for a nominal amount of USD 500,000,000,000, at a fixed annual rate of 9.500%, redeemable, maturing in 2031.
Simultaneously with the offering of the Class 21 Notes, Telecom launched a cash tender offer to repurchase its Class 5 fixed rate 8.500% Notes due 2025, issued under the Program, for a total amount of up to USD 100 million of principal outstanding under the 2025 Notes. Telecom used part of the proceeds received from the placement of the Class 21 Notes to repurchase on August 8, 2025 Notes for an outstanding principal amount of USD 19,849,880. After the repurchase, the outstanding capital of the Notes 2025 amounted to USD 112,366,260.
On July 11, Telecom launched an offer of additional class 21 notes to be subscribed in exchange with class 1 notes at a fixed rate of 8.000% maturing in 2026, issued by Telecom under the Program. Under the Exchange Offer, on the one hand, on the early issuance and settlement date, July 26, Telecom accepted a par value of USD 115,299,000 of 2026 Notes and issued in exchange a par value of USD 115,263,000 of Additional Class 21 Notes. On the other hand, on the issuance and final settlement date, August 9, Telecom accepted a par value of USD 1,954,000 of 2026 Notes and issued in exchange a par value of USD 1,954,000 of Additional Class 21 Notes. The Class 21 Notes and the Additional Class 21 Notes issued are part of the same class and their aggregate par value amounts to USD 617,217,000.
The 2026 Notes accepted for exchange were cancelled and, consequently, the outstanding principal amount of the 2025 Notes amounts to USD 282,747,000.
Marval O’Farrell Mairal, locally, and A&O Shearman, under foreign law, advised Deutsche Bank Securities, JP Morgan Securities, Santander US Capital Markets, BBVA Securities, BCP Securities, Latin Securities, Agente de Valores, and UBS Securities, as international placement agents; and Latin Securities, Banco de Galicia y Buenos Aires, Macro Securities, and Industrial and Commercial Bank of China (Argentina).
Marval’s team was led by partners Juan M. Diehl Moreno (pictured left) and Sergio Tálamo (pictured right), together with associates María Manuela Lava and Juan Pablo Lentino.
EGFA’s team included partners Baruki González and Ximena Digón, and associates María Constanza Martella, Marina Galindez, Agustina Weil and Luciano Laborato.
