EDENOR current report, Q3 FY2021

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Business Context and Reporting Period

This Form 6-K filing by Empresa Distribuidora y Comercializadora Norte S.A. (EDENOR) covers the month of July 2021. The filing discloses a material fact regarding a consent solicitation initiated by the Company's Board of Directors on July 16, 2021.

Key Financial Metrics

The filing text does not provide specific values for revenue, profit, cash flow, margins, debt levels, or liquidity ratios. The document focuses exclusively on a corporate action regarding existing debt instruments.

  • Debt Instrument: 9.75% Senior Secured Notes due October 25, 2022 (Class 9 Senior Notes).
  • Consent Payment: US$20 per US$1,000 principal amount of Notes for holders delivering valid consents.

Material Changes

The primary material change is the launch of a consent solicitation to obtain a waiver from Article 10.3 of the Indenture dated October 25, 2010. This article currently requires the Company to offer to repurchase the Notes upon a Change of Control. The waiver is sought to facilitate the acquisition of control over EDENOR by Empresa de Energía del Cono Sur S.A. without triggering a default or mandatory repurchase obligation under the existing terms.

Guidance, Outlook, and Risks

Management Commentary and Conditions:

  • The consent solicitation expires at 5:00 p.m. New York City time on July 30, 2021, unless extended.
  • The record date for the solicitation was July 15, 2021.
  • The waiver is conditioned on receiving consents from holders of not less than a majority in aggregate principal amount of the outstanding Notes.
  • The waiver, once effective, will apply to all holders regardless of whether they delivered a consent.
Risks and Contingencies:
  • The transaction is subject to customary conditions and may not be consummated.
  • Forward-looking statements regarding the acquisition and consent process are subject to risks and uncertainties.
  • The filing explicitly states that no recommendation is made by the Issuer or its agents regarding whether holders should deliver consents.

Investor Verification Checklist

  • Verify the outcome of the consent solicitation and whether the required majority of consents was obtained by the July 30, 2021 deadline.
  • Confirm the status of the proposed acquisition of control by Empresa de Energía del Cono Sur S.A.
  • Review the full Consent Solicitation Statement for detailed terms and conditions not summarized in this press release.
  • Monitor for the payment of the US$20 per US$1,000 consent fee if the waiver is approved.