Marval O'Farrell Mairal advises on Telecom Argentina's return to the international and local capital markets

Marval acted as legal counsel to the international and local underwriters in the issuance of a new class of notes of Telecom Argentina, and in the exchange and repurchase of existing notes.

Telecom Argentina SA, under its global program for the issuance of notes for a nominal amount of up to USD 3,000,000,000,000 (or its equivalent in other currencies or units of value), on July 18, 2024, issued Class 21 notes for a nominal amount of USD 500,000,000,000, at an annual fixed rate of 9.500%, redeemable, maturing in 2031.

Concurrently with the offering of the Class 21 Notes, Telecom launched a cash tender offer of its 8.500% fixed rate Class 5 notes due 2025, issued under the Program, for an aggregate principal amount of up to USD 100 million, outstanding under the 2025 Notes. Telecom used part of the proceeds received in the placement of the Class 21 Notes to repurchase on August 8, 2024, 2025 Notes for an outstanding principal amount of USD 19,849,880. After such repurchase, the outstanding capital of the 2025 Notes amounts to USD 112,366,260.

On July 11, 2024, Telecom launched an offer of additional class 21 notes, to be subscribed in exchange with class 1 notes at a fixed rate of 8.000%, maturing in 2026, issued by Telecom under the Program. Under the exchange offer, on one hand, on the early issuance and settlement date, July 26, 2024, Telecom accepted a par value of USD  115,299,000 of 2026 Notes and issued in exchange a par value of USD 115,263.000, par value of Additional Class 21 Notes. On the other hand,  on the final issuance and settlement date, August 9, 2024, Telecom accepted USD 1,954,000 par value of 2026 Notes and issued in exchange USD 1,954,000 par value of Additional Class 21 Notes. The Class 21 Notes and the Additional Class 21 Notes issued are part of the same class and their aggregate par value amounts to USD 617,217,000.

The 2026 Notes accepted for the exchange were cancelled and as a result, the outstanding principal amount of the 2025 Notes amounts to USD 282,747,000.

Marval O’Farrell Mairal, locally, and A&O Shearman, under foreign law, advised Deutsche Bank Securities Inc, JP Morgan Securities LLC, Santander US Capital Markets LLC, BBVA Securities Inc, BCP Securities, Inc, Latin Securities SA, Agente de Valores, and UBS Securities LLC, as international placement agents; and Latin Securities SA, Banco de Galicia y Buenos Aires SAU, Macro Securities SAU, and Industrial and Commercial Bank of China (Argentina) SAU.

The team was led by partners Juan M. Diehl Moreno and Sergio Talamo, together with associates Maria Manuela Lava and Juan Pablo Lentino.

This high level of response from investors is the result of the confidence of both the domestic and international markets in the company's financial soundness and in its business strategy, not only for the short term but also for the medium and long term,” said Telecom.