A small Argentinian property company has issued
high yield despite its size and developers typically
unsteady cash flows.
The offering circular for Raghsas $100
million of senior notes omitted a fundamental covenant.
The big difference is there wasnt a ratio for debt
incurrence, said Juan Mendez from bookrunners US
counsel Simpson Thacher & Bartlett.
The family-owned company has two business lines:
building-to-sell residential space, and building-to-lease
commercial space. The time lag between building and selling
affects any developers revenue, but this is amplified
when the developer operates on such a small scale.
That played a big role in how we structured the