Argentina Announces Global Debt Exchange.Business Editors BUENOS AIRES--(BUSINESS WIRE)--Feb. 1, 2001 The Republic of Argentina ("Argentina") announced today an invitation (the "Invitation") to holders of certain of Argentina's outstanding bonds (the "Eligible Bonds") to submit, in an electronic, modified Dutch auction Dutch Auction An auction where the price on an item is lowered until it gets its first bid, and then the item is sold at that price. Notes: The U.S. Treasury (and other countries) uses a Dutch auction when it sells securities. for each series of Eligible Bonds, offers to exchange Eligible Bonds for U.S. dollar-denominated Global Bonds due 2012 ("New Global Bonds"). Argentina intends to issue a minimum of US$750,000,000 of aggregate principal amount of New Global Bonds through this transaction. Pursuant to the Invitation, holders can offer to exchange US$1,270,994,069 9.50% Bonos del Tesoro a Mediano Plazo due 2001 ("Bontes 2001"); US$2,767,038,000 8.75% Bonos del Tesoro a Mediano Plazo due 2002 ("Bontes 2002"); US$2,820,801,641 11.75% Bonos del Tesoro a Mediano Plazo due 2003 ("Bontes 2003"); US$2,897,790,747 11.25% Bonos del Tesoro a Mediano Plazo due 2004 ("Bontes 2004"); US$2,609,252,838 12.125% Bonos del Tesoro a Mediano Plazo due 2005 ("Bontes 2005"); US$1,090,976,000 Floating Rate Bonos del Tesoro a Mediano Plazo due 2003 ("Bontes TV"); US$6,465,509,000 Floating Rate Bonds due 2005 ("FRBs"); US$310,894,000 Spread-Adjusted Notes due November 30, 2002 ("SPANs"); US$2,050,000,000 8.375% Global Bonds due 2003 ("Global Bonds 2003"); US$1,000,000,000 11.00% Global Bonds due 2005 ("Global Bonds 2005"); US$1,300,000,000 11.00% Global Bonds due 2006 ("Global Bonds 2006"); AR$427,780,000 8.75% Bonds due 2002 ("AR$ Eurobonds 2002"); AR$500,000,000 11.750% Bonds due 2007 ("AR$ Eurobonds 2007); AR$805,970,767 Bonos de Consolidacion de Deudas Previsionales en Moneda Nacional Segunda Serie ("Bocon Pre 3 Bonds"); US$2,412,874,693 Bonos de Consolidacion de Deudas Previsionales en Dolares Estadounidenses Segunda Serie ("Bocon Pre 4 Bonds"); AR$2,926,108,704 Bonos de Consolidacion en Moneda Nacional Primera Serie ("Bocon Pro 1 Bonds"); US$1,108,572,954 Bonos de Consolidacion en Dolares Estadounidenses Primera Serie ("Bocon Pro 2 Bonds") (collectively, the "Eligible Bonds") for New Global Bonds. There is approximately US$29.0 billion in aggregate principal amount of Eligible Bonds currently outstanding. Holders whose offers are accepted will receive in exchange for each US$1,000 (or AR $1,000, as the case may be) in original principal amount of Eligible Bonds exchanged, a principal amount of New Global Bonds, equal to the product of the applicable Clearing Price and Scaling Factor, times the original principal amount of Eligible Bonds accepted for exchange, divided by, the New Global Bond Issue Price, rounded down to the nearest US$1,000. Each Bondholder Bondholder A firm often has stockholders and bondholders. In a liquidation, the bondholders have first priority. bondholder An individual or institution that owns bonds in a corporation or other organization. will also receive cash equal to the accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. but unpaid interest on its Eligible Bonds (except for Bocon Pre 3 Bonds, Bocon Pre 4 Bonds, Bocon Pro 1 Bonds and Bocon Pro 2 Bonds, which are traded at prices that include accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. , and except for Bontes TV, for which such Bondholder will receive an amount in cash based on a per annum Per annum Yearly. interest rate of 11.51% from and including January 22, 2001 to but excluding February 21, 2001), and cash in respect of rounded amounts, as described in the Invitation Materials. The "New Global Bond Issue Price" will represent a price per US$100 principal amount of New Global Bonds that results in a yield to maturity of the New Global Bonds on the Settlement Date equal to the sum of (a) the UST USt Umsatzsteuer (German: Tax) UST Underground Storage Tank UST University of St. Thomas (Minnesota, Texas) UST University of Santo Tomas (Manila, Philippines) Benchmark Rate, plus (b) the New Global Bond Issue Spread. Argentina will determine the New Global Bond Issue Price at or around 9:00 A.M., New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. time, on February 7, 2001 (the "Expiration Date Expiration Date The day on which an options or futures contract is no longer valid and, therefore, ceases to exist. Notes: The expiration date for all listed stock options in the U.S. "). If a Bondholder desires to submit an Exchange Offer, it must submit, or arrange to have submitted, a duly completed letter of transmittal Letter of Transmittal A document used by security holder to accompany certificates surrendered in an exchange or other corporate action. electronically via https://www.gs.com/fi/eexchange/start.gscgi/11000 or https://www.ssmb.com/exchange (the "Invitation Website"), during the Submission Period. The "Submission Period" commences at or around 9:00 A.M., New York City time, and will end at 3:00 P.M., New York City time, on the Expiration Date, February 7, 2001. The Invitation Website is only accessible by password, which a Bondholder may obtain, subject to certain requirements, by contacting the joint lead managers at the telephone numbers listed in this press release. A Bondholder may submit an electronic letter of transmittal only via the Invitation Website. You may submit an electronic letter of transmittal in any of the following ways: Exchange Offers with respect to Eligible Bonds held in Euroclear and Clearstream, Luxembourg An electronic letter of transmittal relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc Eligible Bonds held in Euroclear or Clearstream, Luxembourg may be completed by a direct participant in one of these clearing systems who has delivered Bond Instructions to Euroclear or Clearstream, Luxembourg, or a beneficial owner Beneficial Owner A person who enjoys the benefits of ownership even though title is in another name. Notes: For example, when shares of a mutual fund are held by a custodian bank or when securities are held by a broker in street name, the true owner is the beneficial who has instructed such direct participant holding the Eligible Bonds on his behalf in Euroclear or Clearstream, Luxembourg, to deliver such Bond Instructions and such Bond Instructions have been delivered. Alternatively, you may request a joint lead manager or a co-manager, who is under no obligation to act on your behalf, to submit an electronic letter of transmittal on your behalf. Argentina will not require a joint lead manager or a co-manager acting on your behalf to deliver Bond Instructions prior to the end of the Submission Period. However, Euroclear and/or Clearstream, Luxembourg must receive Bond Instructions with respect to any such Exchange Offers accepted by Argentina no later than two Business Days after the Announcement Date. Direct participants in Euroclear or Clearstream, Luxembourg should include a reference code in the remarks field on the Bond Instructions, preferably pref·er·a·ble adj. More desirable or worthy than another; preferred: Coffee is preferable to tea, I think. pref a subaccount reference to the beneficial owner for the direct participant's account at Euroclear or Clearstream (no more than 25 characters). Any reference code entered on the Bond Instructions should also be entered on the electronic letter of transmittal at the Invitation Website. To the extent that the direct participant is not entering orders on the Invitation Website, the reference code for each Bond Instruction should be transmitted to the person who is entering orders on behalf of the beneficial owner. In addition, any joint lead manager or co-manager submitting offers on your behalf must include your (or such joint lead manager's or co-manager's, as the case may be), Euroclear or Clearstream, Luxembourg account information in the electronic letter of transmittal. A joint lead manager or co-manager may impose additional conditions on an offer to exchange made in this manner. Exchange Offers with respect to Eligible Bonds held in Caja de Valores If you hold Eligible Bonds in the Caja de Valores, you may submit an electronic letter of transmittal for Exchange Offers relating to such Eligible Bonds only through a co-manager acting on your behalf. Although the co-managers are under no obligation to act on your behalf, once a co-manager tenders an Exchange Offer on your behalf this co-manager will become responsible for the delivery of any Eligible Bonds accepted by Argentina with respect to such Exchange Offer to such co-manager's fiduciary fiduciary (fĭd  `shēĕ'rē), in law, a person who is obliged to discharge faithfully a responsibility of trust toward another. account at Euroclear or Clearstream, Luxembourg no later than two Business Days after the Announcement Date. Each co-manager will establish its own fiduciary account at Euroclear and/or Clearstream Luxembourg and will require you to deliver your Eligible Bonds specified in such Exchange Offer to this account, either after the Announcement Date or possibly before the Announcement Date in its sole discretion, but in no event later than two Business Days after the Announcement Date. In addition, a co-manager may impose additional conditions or procedures before acting on your behalf in this manner. Exchange Offers with respect to Certificated FRBs If you hold certificated FRBs not held through Euroclear, Clearstream, Luxembourg, or Caja de Valores, you may submit electronic letters of transmittal and tender those securities under the procedures described in the prospectus supplement relating to the Invitation. Luxembourg Holders If you are in Luxembourg, you may contact and instruct in·struct v. in·struct·ed, in·struct·ing, in·structs v.tr. 1. To provide with knowledge, especially in a methodical way. See Synonyms at teach. 2. To give orders to; direct. v. the Luxembourg exchange agent to submit an electronic letter of transmittal on your behalf or have an electronic letter of transmittal submitted according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. one of the methods described above. For purposes of the Invitation, the value of each series of Eligible Bonds being exchanged will be determined through an electronic modified Dutch auction, in which each Bondholder submitting an offer to exchange Eligible Bonds will submit a minimum price that such Bondholder would be willing to accept as the clearing price for such series of Eligible Bonds. Argentina will select, in its sole discretion, the applicable clearing price for Eligible Bonds of each series and will announce on the Invitation Website and by press release issued to the News Services at or around 8:30 A.M., New York City time, or as soon as possible thereafter, on the next Trading Day In Business, the trading day is the time span that a particular stock exchange is open. For example, the New York Stock Exchange is, as of 2006, open from 09:30AM to 4:00PM. Trading days never take place on weekends. after the Expiration Date (the "Announcement Date"). The clearing price for Eligible Bonds of any series may not be below the applicable Minimum Clearing Price or above the Maximum Offer Price for Eligible Bonds of that series, which Argentina will select in its sole discretion and announce on the Invitation Website and by press release issued to the News Services at or around 9:00 A.M., New York City time, on the Expiration Date. If an electronic letter of transmittal is submitted directly, that holder of Eligible Bonds may review its individual allocation of New Global Bonds and cash at the Invitation Website. The Invitation is scheduled to expire at 3:00 P.M., New York City time, on February 7, 2001, unless extended or earlier terminated by Argentina in its sole discretion. Results of the Invitation will be announced at or around 8:30 A.M., New York City time, or as soon as possible thereafter, on February 8, 2001, and settlement will occur on February 21, 2001. Copies of the prospectus supplement describing the Invitation may be obtained from Deutsche Bank Deutsche Bank AG (IPA: /'dɔɪ.tʃə/[1]) (ISIN: DE0005140008, NYSE: DB) (English: German Bank Luxembourg S.A., 2, Boulevard Konrad Adenauer Noun 1. Konrad Adenauer - German statesman; chancellor of West Germany (1876-1967) Adenauer , L-1115 Luxembourg, as the Luxembourg exchange agent, at telephone (352) 421221, or from either of the joint lead managers at one of the telephone numbers listed below. Capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. terms used but not defined herein have the meaning ascribed to them in the prospectus supplement. Goldman, Sachs & Co., 85 Broad Street, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , New York, 10004, USA, telephone 1-877-482-7424 (inside the U.S.) or collect 1-212-902-2515 (outside the U.S.); and Salomon Smith Barney Smith Barney is a division of Citigroup Global Capital Markets Inc., a global, full-service financial firm, that provides brokerage, investment banking and asset management services to corporations, governments and individuals around the world. , 388 Greenwich Street, New York, New York, 10013, USA, telephone 1-800-558-3745 (inside the U.S.) or collect 1-212-723-6108 (outside the U.S.) are acting as joint lead managers for the Invitation. The co-managers for the Invitation are JP Morgan - Argentina; Deutsche Bank S.A.; BBVA BBVA Banco Bilbao Vizcaya Argentaria (First Bank of Spain) Banco Frances S.A.; BankBoston N.A.; Citibank, N.A.; ING Bank N.V.; Banco de Galicia y Buenos Aires S Buenos Aires (bwā`nəs ī`rēz, âr`ēz, Span. bwā`nōs ī`rās), city and federal district (1991 pop. .A.; HSBC Bank Argentina HSBC Bank Argentina SA is the principal HSBC operating company in Argentina, it has around 150 branches throughout the country providing a full range of banking and financial products and services, including commercial, consumer and corporate banking, to over 1.2 million customers. S.A.; Banco Rio de la Plata S La Plata (lä plä`tä), city (1991 pop. 640,344), capital of Buenos Aires prov., E central Argentina, 5 mi (8.1 km) inland from Ensenada, its port on the Río de la Plata. .A.; Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. N.T. & S.A.; and ABN AMRO ABN AMRO Algemene Bank Nederland-Amsterdam Roterdam Bank (Dutch bank) Bank N.V. This communication shall not constitute an offer to sell or the solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual of an offer to buy nor shall there be any sale of the securities referenced in this communication in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The distribution of materials relating to the Invitation, and the transactions contemplated by the Invitation, may be restricted by law in certain jurisdictions. If materials relating to the Invitation come into your possession, you are required by Argentina to inform yourself of and to observe all of these restrictions. The materials relating to the Invitation do not constitute, and may not be used in connection with, an offer or solicitation in any place where offers or solicitations are not permitted by law. If a jurisdiction requires that the Invitation be made by a licensed broker or dealer or any co-manager or any affiliate of any co-manager is a licensed broker or dealer in that jurisdiction, the Invitation shall be deemed to be made by such co-manager or such affiliate on behalf of Argentina in that jurisdiction. NETHERLANDS: This offer is only extended to individuals or legal entities who or which trade or invest in securities in the conduct of their profession or trade. |
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