Debt Restructuring for Arcor S.A.I.C., Latin America?s Largest Candy Exporter

Linklaters acted for two syndicates comprising international and local banks in connection with the restructuring of approximately U.S.$200 million in debt by Arcor S.A.I.C., the largest caramel manufacturer in the world and the largest exporter of candy in Latin America.

The refinancing, which became public on December 15, 2003, included the amendment and restatement of a U.S.$200 million Credit Agreement and of a U.S.$39.2 million Pre-Export Credit Agreement, both governed by New York law. The agreements have a final maturity date for the loans of December 2008 and include provisions for repayments or prepayments, and the mechanics required to coordinate them across all the outstanding facilities. In addition, the amendments to the pre-export facility also had to take into account Argentina?s foreign exchange restrictions and its Central Bank regulations.

The refinancing also involved the simultaneous amendment of two other loans under Argentine law in an aggregate amount of approximately Argentine Pesos 37.0 million (U.S.$12 million) which amendments were internally documented by the relevant banks.

Conrado Tenaglia, who led the Linklaters team said: ?This was a very important transaction to have worked on as it involved the overall debt refinancing of an Argentine company which, as a result of its strong export focus, has been able to secure longer term financing and comparatively better terms than more domestically oriented borrowers?.

Linklaters attorneys in Madrid and New York (Conrado Tenaglia, Caird Forbes-Cockell, Eileen Fitzsimons and Marcelo Arellano), advised lenders BankBoston N.A., Citibank, N.A., BBVA Banco Francés, S.A., Cooperatieve Centrale Raiffeisen?Boerenleenbank B.A., ?Rabobank International?, Banco Santander Central Hispano, S.A., and Bladex. Argentine law advice to the lenders was provided by Bruchou, Fernández Madero, Lombardi & Mitrani (Analia Battaglia, Damian Krell and Tomás M. Fiorito). Also advising on the transaction were Muñoz de Toro & Muñoz de Toro (Fabián D'Aiello and Matías Cámara) as Argentine counsel to Arcor.