News

13 September 2019

PAGBAM advised Euro S.A. in the modification of the terms and conditions of its Negotiable Obligations Program

PAGBAM advised Euro S.A. in the modification of the terms and conditions of its Negotiable Obligations Program for the sum of up to $ 500,000,000 or its equivalent in other currencies in order to include an open mortgage as collateral.

Pérez Alati, Grondona, Benites & Arntsen advised Euro S.A. (the “Company”) in the update, increase of amount and modification of the terms and conditions of the Global Program for the issuance of negotiable obligations SME CNV, simple, not convertible into shares, (the “Program”) in which it was included as a guarantee of the Program, an open mortgage under the terms of articles 2189 and 2190 of the Civil and Commercial Code on two real property owned by the Company and its shareholders, in order to guarantee the sum of US $ 4,430,720 or its equivalent in other currencies (the “Guaranteed Amount”). The maximum amount in circulation of the Program was raised to $ 500,000,000 or its equivalent in other currencies, so the Company may issue series within the Program with or without guarantee.

The authorization granted by the National Securities Commission on September 3, 2019 meant a new precedent, attentive that this institute had not been used so far, incorporated by the Civil and Commercial Code in 2015 as a guarantee of emissions of negotiable obligations under a program of negotiable obligations.

The purpose of the constitution of the open mortgage is that before the issuance of a new series of Negotiable Obligations, it will not be necessary the constitution of another mortgage that guarantees the new series to be issued, since said negotiable obligations may be guaranteed in the mortgage open for up to the Guaranteed Amount. The open mortgage will be granted without initial determination of the specific credits, which will be annexed in subsequent acts (issuance of new series), within the existing Issuance Program and with a maximum limit of 10 years from the date of granting of the open mortgage.

Legal Advisors for Euro S.A.

Pérez Alati, Grondona, Benites & Arntsen 

Partner María Gabriela Grigioni. Associates: Nahuel Perez de Villarreal, Tomás Rago, and Cristian Marcos Chang. 

Read article published in Abogados.com.ar

Read article published in Lex Latin

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