Pampa Energia $74 million share issue

Overview:

• Pampa Energia has issued 381.5 million of shares of common stock and publicly placed 86.9 million shares of common stock.
• The firm closed this deal quickly, in under four weeks. “The owners wanted to close the transaction before the year’s end, that is to say, after elections but before the new government was in office, because there was a window there, they thought there was a market for the transaction to be placed,” explained Salaverri partner Martín Fernández Dussaut. The firms worked closely together to ensure the deal closed on time. “It was a common effort,” said BFM&L partner José M Bazán.
• This transaction was “particularly complex because given the current Argentine foreign exchange restrictions, the settlement was made through a mechanism called ‘contado con liquidacion’ or blue chips swap by means of which [the underwriters bought] Argentine US dollar-denominated bonds,” Dussaut explained. The underwriters then transferred the bonds to Argentina and sold them for pesos. “It was the first equity offering made in Argentina settled through this mechanism,” said Dussaut. The stock was then converted into American Depositary Shares and issued in the NYSE.
• Pampa Energia, Mindlin Warrants, DM Warrants, GMA Warrants and RT Warrants acted as warrant holders.
• Merrill Lynch acted as underwriter.
• Salaverri Dellatorre Burgio & Wetzler Malbran Abogados (Diego Salaverri, Martín Fernández Dussaut), Cleary Gottlieb Steen & Hamilton (Juan Giraldez) and Montevideo-based advised Pampa Energia.
• Posadas Posadas & Vecino (Eduardo Ferrari) advised the Warrant Holders.
• Bruchou Fernández Madero & Lombardi (José Bazán) and Simpson Thacher & Bartlett (David Williams, Juan Francisco Mendez) represented the underwriter.

Rani Mehta  Journalist - Latin America