YPF Gets Creditor Support in Debt Exchange to Avoid Default

YPF SA, Argentina’s state-run oil driller and refiner, looks set to avoid a costly default next month after it won support for a debt swap from a large creditor group, Bloomberg News reported. The so-called Ad Hoc Bondholder Group, which holds 45% of YPF’s 2021 notes, expressed support for the exchange after the company increased its cash sweetener over the weekend, according to a statement. Bonds due in 2021 rose 4.5 cents to 95 cents on the dollar as of 10:40 am in New York, the highest since Jan. 8. The company’s shares climbed as much as 6%. YPF amended its debt proposal for a fourth time, offering creditors $408 dollars in cash for every $1,000 of 2021 bonds tendered in the exchange. Previously, YPF was offering its creditors a $283 cash payment. The latest offer “represents an improvement,” and “provides a balanced solution for the 2021 notes,” the group said in the statement. The new deadline to take the deal is Feb. 10 at 11:59 p.m. in New York. YPF notes climb back after investors panned company's first debt offer in January. Support from the group increases YPF’s chances of avoiding a hard default next month, according to Santiago Barros Moss, an analyst at TPCG Valores in Buenos Aires. Read more.