Business Context and Reporting Period
This Form 6-K filing by Empresa Distribuidora y Comercializadora Norte S.A. (Edenor), an Argentine distribution and marketing company, was filed on October 6, 2007. The document serves as the Third and Fourth Complementary Notices to a Pricing Supplement dated July 4, 2007, regarding the issuance of Class No. 7 Fixed Rate Notes due 2017 under Edenor's Medium Term Note Program.
Key Financial Metrics and Transaction Details
- Debt Issuance: Edenor is issuing US$220,000,000 in Class No. 7 Fixed Rate Notes (originally authorized up to US$250,000,000).
- Interest Rate: The Notes accrue interest at a fixed rate of 10.5%.
- Issuance Price: 100% of nominal value.
- Issuance Date: October 9, 2007.
- Maturity Date: October 9, 2017.
- Interest Payment Dates: April 9 and October 9 of every year.
- Program Capacity: Part of a Medium Term Note Program with up to US$600,000,000 outstanding at any time.
The filing text does not provide specific values for revenue, profit, cash flow, operating margins, or existing liquidity positions outside of this specific debt transaction.
Material Changes and Transaction Terms
The filing details specific terms for the new debt issuance rather than operational changes. Key terms include:
- Redemption at Edenor's Option: The Company may redeem the Notes, in whole or in part, at any time on or after October 9, 2012, up to the maturity date.
- Optional Redemption upon Public Equity Offering: The Company may redeem the Notes at any time until October 9, 2012, using net cash proceeds from any Public Equity Offering.
- Placement Agents: International agents include Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. Local agents include Citicorp Capital Markets S.A., Deutsche Bank S.A., and Banco de Valores S.A.
Guidance, Outlook, and Risks
The filing does not contain management commentary, financial guidance, or an outlook on future business performance. It is strictly a notice regarding the finalization of debt issuance terms. The document notes that the Fourth Complementary Notice replaces a previous notice dated September 27, 2007, due to the October 8, 2007 bank holiday in New York affecting the schedule.
Important Facts for Investor Verification
- Verify the final issuance amount of US$220,000,000 against the authorized cap of US$250,000,000.
- Confirm the fixed interest rate of 10.5% and the semi-annual payment schedule.
- Review the redemption clauses, specifically the ability to redeem after October 9, 2012, or earlier via equity offering proceeds.
- Check the company's overall debt load within the US$600,000,000 Medium Term Note Program limit.
- Confirm the settlement date of October 9, 2007, given the New York bank holiday on October 8, 2007.