Fitch Ratings Comments on Edenor Cash Tender Offer.BUENOS AIRES Buenos Aires (bwā`nəs ī`rēz, âr`ēz, Span. bwā`nōs ī`rās), city and federal district (1991 pop. , Argentina -- Empresa Distribuidora y Comercializadora Norte S.A. (Edenor) has launched a $65 million cash tender offer for a portion of its outstanding debt. Fitch rates Edenor as follows: -- Foreign currency rating 'D'; -- Local currency rating 'DD'; -- National rating 'D(arg)'. Fitch will maintain Edenor's 'D' rating until the company restructures all of its debt. Following the completion of the restructuring process, Fitch is expected to assign a rating to the new debt. Edenor launched a $65 million cash offer to buy back a portion of its eligible debt, totaling $420 million. The eligible debt is made up of the bonds class 2 ($162 million as of Sept. 30, 2004), fiduciary titles gain trust ($140 million as of Sept. 30, 2004), and other dollar-denominated debt. The offer will expire on Dec. 10, 2004. The purchase price for each $1,000 of principal will be determined by a modified Holland bidding process, with an expected price range between $700 and $750. The company will not pay 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. (including punitive interest or any additional charges) on the debt to be purchased. As of Sept. 30, 2004, Edenor's total past due debt was $320.2 million, of which $232.5 million were bonds. As of September 2004, the company had $88.4 million in cash and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has . If the offer is successful, the maximum nominal value Nominal Value The stated value of an issued security that remains fixed, as opposed to its market value, which fluctuates. Notes: When referring to fixed-income securities, the nominal value is also the face value. of the debt to be paid off is expected to be between $92.9 million and $86.7 million, implying a discount over the face value of 30% and 25%, respectively. About $300 million will remain to be restructured. Fitch will maintain Edenor's 'D' rating until the company restructures all of its debt. Following the completion of the restructuring process, Fitch is expected to assign a rating to the new debt. Edenor suspended its principal payments in September 2002 but stayed current interest payments (excluding penalty payments). Edenor has retained JP Morgan to develop its debt-restructuring plan. Edenor was created in 1992 after the privatization privatization: see nationalization. privatization Transfer of government services or assets to the private sector. State-owned assets may be sold to private owners, or statutory restrictions on competition between privately and publicly owned of the Empresa Servicios Electricos del Gran Buenos Aires S.A. (SEGBA). Edenor distributes electricity to the northwestern half of the greater Buenos Aires Greater Buenos Aires (Spanish: Gran Buenos Aires) is the metropolitan area of the city of Buenos Aires, Argentina, which consists of the Federal Capital and the following 24 partidos (administrative subdivisions) of the Province of Buenos Aires: EASA European Advertising Standards Alliance (Brussels, Belgium) EASA European Association of Social Anthropologists EASA European Architecture Students Assembly EASA European Academic Software Award ) (51%), a holding company controlled by EDF (algorithm) EDF - earliest deadline first. International (100%), EDF International (39%), and employees (10%). |
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