Argentine retailer company closed US$180 million debt restructuring

Argentine retailer Coto Centro Integral de Comercialización S.A. (?Coto?) has successfully restructured its US$180 million financial debt with Banc of America Securities Limited, Citibank International plc, J.P. Morgan Chase Bank, Credit Suisse First Boston, Banco Galicia Uruguay S.A., Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A., ?Rabobank International?, New York Branch, Banco Macro Bansud S.A. and Deutsche Bank A.G., London Branch. The transaction closed on November 29, 2004.

Coto is one of Argentina?s largest retailer, with about 100 branches and employing over 18,000 people.

The restructured debt was held by Coto pursuant to a US$175,000,000 syndicated loan dated April 19, 2001, as amended, and several bilateral export financing facilities.

The deal consisted of one agreement to restructure the debt under the syndicated loan and three bilateral agreements to restructure the export financing facilities upon similar terms and conditions than those provided for under the syndicated agreement.

The parties agreed on an extension on the term of payment and on an interest rate of libor plus a step-up margin, from 2.5 per cent for the first year to 4 per cent for the last two years. The last principal payment will be due in 2010. The transaction also contemplates the possibility of providing liquidity by allowing the restructured debt to be negotiated through a clearing agency.

Coto took financial advise from Infupa S.A trough Manuel Solanet and Marcos Ayerra.

Marval, O?Farrell & Mairal advised the banks in Argentina, through senior associate Tito Livio Venturini and associates Diego P. Roizen and Sergio Tálamo.

Shearman & Sterling LLP advised the banks in New York through partners John Millard and Denise Grant, and associate Geoffrey Richardson.

Muñoz de Toro & Muñoz de Toro acted as counsel of Coto through partners Fernando Muñoz de Toro, Ricardo Muñoz de Toro and Fabián D?Aiello, and associate Sebastián Cordova Moyano.