YPF announced yesterday a proposed swap to extend the maturity of a $1 billion international bond. The paper matures in March 2021. The proposal is to offer those who join a cash payment and a new series of Negotiable Obligations with final maturity in 2025. Thus, for every $1,000 face value of Class XLVII, the investor will get $100 cash and $950 face value of a new series.
Two major car paint manufacturers announced in the last hours that they would stop producing in the country as a result of the crisis caused by the pandemic both locally and globally. They are the German company Basf and the American company Axalta. The German company will move production to the state of Sao Paulo but will continue to operate commercially in the country through imports. On the other hand, the American company announced that it is withdrawing from the local market definitively.
The departure of Latam from Argentina means that it stops flying to 12 domestic destinations, three regional ones (Sao Paulo, Santiago de Chile and Lima) and one international one (Miami). Yesterday, the date was set to begin negotiations on the future of the 1,715 employees who will be fired when Latam Airlines completes its exit from Argentina.
Arcor will go out today to the capital market to seek funding through the issuance of negotiable bonds indexed to the official dollar, for which it expects to get at least 500 million pesos ($7.09 mn). They will earn interest equivalent to the Badlar rate for private banks, currently at 29.63% per year, plus a cut margin to be established on the day of the auction and will have a term of 15 months.
Mercado Libre was ranked 37th in a Financial Times ranking, which also includes companies such as Apple and Alphabet. Sales traffic of the Mercado Libre platform increased by 76% in April.
It is Stripe, a $36 billion payment processing platform. It is a technology and finance company that created payment processing software used by thousands of companies around the world. The registration of Stripe Payments Argentina SA took place during the first week of March.
Buenos Aires Design got a new owner: the Uruguayan holding company Hatzlaja will pay more than $81,767 a month to operate the building and will invest $13.4 million in works to renovate it. The company won the bidding process carried out by the Government of the City of Buenos Aires, and today the contract for the transfer was signed.
Rizobacter, an Argentine agricultural microbiology company and subsidiary of Bioceres, a provider of crop productivity solutions, obtained $15 million in Series III Negotiable Obligations (ON) with an 18-month term and a nominal annual interest rate of 4.73%. It was one of the few companies that obtained an improvement in its credit rating based on excellent financial performance. The company has grown in sales, not only in Argentina but also internationally.
According to CB Insights, the fintech Ualá could become the sixth Argentine firm valued in more than $1 billion. The other five firms are Mercado Libre, Despegar, OLX, Globant and Auth0. Ualá was founded in 2017 by economic historian Pierpaolo Barbieri and received investments from billionaire George Soros, Tencent and SoftBank. Since the quarantine, the firm has issued 170,000 cards, and payment for services through the app has increased by 300%.
The new owner assures that he already renegotiated the debt with banks and suppliers, which was around 12 billion pesos ($173 mn). It also guarantees the maintenance of the jobs and plans an expansion to Uruguay, Paraguay and Bolivia.