Argentine BBVA completes restructuring

Argentine bank BBVA Banco Francés S.A. has recently completed the restructuring of US 135 million in floating rate notes. BBVA Banco Francés S.A. is controlled by the Spanish bank Banco Bilbao Vizcaya Argentaria S.A. and like all Argentine banks, it was forced to restructure its foreign debt after the crisis that shocked the Argentine financial system. To achieve the restructuring BBVA Banco Francés S.A. repaid 10% of the outstanding notes and issued new amortizing floating rate notes for an amount of US$ 121.5 million and a final 5 year maturity. Interest on the new notes will accrue at the LIBOR rate, plus a variable step-up margin (1 to 2% per annum) and an incremental contingent margin based on the return on equity of the bank. A syndicate of international banks participated in the restructuring. Banc of America Securities LLC acted as arranger for the transaction.

Partner Diego Serrano Redonnet and associates Florencia Celasco and Hugo Juárez Weigandt of Pérez Alati, Grondona, Benites, Arntsen & Martínez de Hoz, acted as Argentine counsel for the international bank syndicate and its steering committee. Morrison & Forrester LLP advised the bank syndicate as to U.S. law, through partner Gunilla Haac and associate Rajiv Vrudhula.

BBVA Banco Francés S.A. was represented by in-house counsel Adrian Bressani and Bruchou, Ferández Madero, Lombardi & Mitrani, through partner Baruki González and associate Mariano Juárez Goñi, on Argentine law matters and by Davis Polk & Wardwell, through partner Andrés Gil and associate Kyle Williams on U.S. law issues.