YPF Offers to Advance Bond Payments to Encourage Creditors

Argentine oil producer YPF SA improved its $6 billion restructuring offer to debtholders, agreeing to pay some interest over the first few years of the new bonds.

The state-run energy producer said it would offer investors three new bonds that will pay as much as 4% from the settlement date through 2022, and also increased the annual coupon payments for the earlier-dated notes, starting in 2023 and until maturity. The new 2026 bonds will now be backed by certain shares the company owns in subsidiary YPF Energia Electricaas additional security for bondholders, according to a company statement.

• Previously, the bonds did not pay interest until 2023.

The move comes after creditor groups formed by several investment firms said they would block the original debt offer. The company didn't meet the quorum Monday to change the conditions on the old notes. YPF, unable to get the central bank to sell it the dollars it needs to make near-term debt payments and seeking to boost investment to reverse years of production declines, surprised investors last month with its restructuring proposal. (BBG)