The Province of Entre Ríos Reaches Agreement in Principle with Bondholders' Group with respect to its 8.750% Notes due 2025

ENTRE RÍOS, Argentina, Feb. 11, 2021 /PRNewswire/ -- The Province of Entre Ríos (the "Province") announced today that it has reached an agreement in principle with the Ad Hoc Group of Entre Ríos Bondholders (the "Group"), with respect to certain proposed amendments (the "Proposed Amendments") to the terms of the Province's U.S.$500 million aggregate principal amount of 8.750% Notes due 2025 (the "Notes").  The Group has aggregate holdings of Notes representing approximately 58% of the Notes outstanding. The agreement in principle contemplates that (i) the Province will formally launch a consent solicitation directed to eligible holders of Notes (the "Consent Solicitation") to obtain the requisite consents under the indenture governing the Notes to effect the Proposed Amendments; and (ii) the Group members will support the Province's proposal to amend the Notes by submitting their consents to the Proposed Amendments.

The Province expects to formally launch the Consent Solicitation as soon as a practicable after obtaining certain governmental approvals and finalizing customary documentation.  If the Consent Solicitation is successfully consummated, the terms of the amended Notes are expected to provide the Province with significant debt service relief in the form of coupon reductions and maturity reprofiling.

Upon the successful consummation of the Consent Solicitation, the Group is expected to withdraw (or cause to be withdrawn) the claim filed by certain entities under the management of Group members on January 4, 2021 in the United States District Court for the Southern District of New York seeking a judgment against the Province.

The Province has engaged HSBC Securities (USA), Inc. to act as solicitation agent and D.F. King to act as information and tabulation agent in the Consent Solicitation.

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This announcement is for informational purposes only and is not an invitation or a solicitation of consents or offer to sell to or a solicitation of offers to buy any securities from any holders of Notes. The Consent Solicitation will be made pursuant to the Consent Solicitation Statement. Before making a decision with respect to their Notes, eligible holders of Notes are urged to review the Consent Solicitation Statement that may be issued by the Province and evaluate the risks associated with the Consent Solicitation and the Proposed Amendments to the Notes.

NONE OF THE PROVINCE, ITS ADVISORS, THE SOLICITATION AGENT OR THE INFORMATION AND TABULATION AGENT NOR ANY OF THEIR RESPECTIVE DIRECTORS, EMPLOYEES, AFFILIATES, AGENTS OR REPRESENTATIVES MAKES ANY RECOMMENDATION AS TO WHETHER ELIGIBLE HOLDERS SHOULD PARTICIPATE IN ANY CONSENT SOLICITATION THAT MAY BE ANNOUNCED BY THE PROVINCE.

Neither the consent solicitation nor the amended Notes will be registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities law and the amended Notes may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws.

Forward-Looking Statements

This announcement contains forward-looking statements.  Forward-looking statements are information of a non-historical nature or which relate to future events and are subject to risks and uncertainties.  No assurance can be given that the transactions described herein will be consummated or as to the ultimate terms of any such transactions. The Province undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information or future events or for any other reason.

SOURCE The Province of Entre Ríos

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