BUENOS AIRES, March 8 (Reuters) - Argentine real estate company IRSA plans an international sale of up to $360 million worth of a seven-year bond to finance the buy back of debt maturing in 2017 and 2020, the Clarin newspaper reported on Tuesday.
Business leaders anticipate corporate borrowing costs will fall in the months ahead after Argentina reached a deal with creditors holding defaulted sovereign bonds, paving the way for an end to the government’s festering 14-year legal fight with bondholders.
“At this stage, the money will be used to pay down debt. Instead of three bonds, we will have one only,” Clarin quoted Matias Gaivironsky, IRSA’s chief financial officer, as saying.
JP Morgan and Citigroup Inc. will lead the sale, which is expected to take place on March 17, Clarin reported.
IRSA has launched a tender to buy back all the outstanding $150 million of outstanding 8.5 percent 2017 bonds and all the $120 million of 7.7875 percent 2017 bonds. It is also targeting up to $76.5 million of 11.5 percent 2020 securities, with an option to increase that amount further.
Company officials were not immediately available for comment. (Reporting by Richard Lough Editing by W Simon)