YPF Bond Swap Terms Provide Investors Right Incentives: Balanz

(Bloomberg) -- The terms of a YPF SA debt swap offer provide the right incentives for investors to tender, Ezequiel Fernandez, an analyst for Balanz Capital Valores in Buenos Aires, wrote in a note to clients.

- Above 60% participation rate for the swap should allow the company to resume drilling in the Vaca Muerta shale play when demand normalizes

- 2025 amortizing bonds and cash payout valued at $88 per every $100

- Successful resolution of Argentina’s sovereign debt restructuring major price driver

-  “The YPF decision is telling us that the company prefers to pay a premium to eliminate uncertainty around the sovereign deal outcome or its timing”

- Holding 2021 bonds only makes sense if you think Argentina more likely than not to remain in default

- Lucror Analytics also views the offer positively