|Pan American Energy, Argentine Subsidiary, the second largest producer of oil and natural gas in Argentina, successfully completed the placement of Negotiable Obligations for a par value of US$500 milion, due in 2021 (10 years of average life), at a fixed nominal anual interest yield of 7.875% and at an issuance price of 98.204%.
The funds resulting from the operation will be used to partially finance the investment program that PAE has in Argentina and its working capital and to restructure its debt.
This new issuance of Negotiable Obligations by Pan American Energy, Argentine Subsidiary, was led by Crédit Agricole CIB, HSBC and J.P. Morgan acting as international placement agents and by HSBC Bank Argentina S.A. and J.P. Morgan, Subsidiary Buenos Aires S.A. as local placement agents.
The success of this operation crowned Pan American Energy, Argentine Subsidiary for its efforts to maintain a high level of investment in the country. At the same time, this reinforces the confidence the Company generates among both national and international investors.
About Pan American Energy
Pan American Energy (PAE) is a regional company dedicated to hydrocarbon exploration and production activities, which currently operates in the Southern Cone, especifically in Argentina, Bolivia and Chile.
Over the last decade, PAE has consolidated its position as the second largest producer of oil and natural gas in Argentina. Currently, the company is responsible for an average 17% of total oil and natural gas produced in the country.
Between 2001 and 2009, Pan American Energy invested more than USD 5.9 billion in its hydrocarbon exploration and production activities in Argentina. Thanks to this investment effort, the incorporation of new technologies and the quality of its human resources, over the last ten years, the company has increased its hydrocarbon production by 93.5%, from 121,000 barrels of oil equivalent per day (boe/d) in 2001 to more than 234,000 boe/d in 2009.
During that same period, PAE annually replaced more than 100% of the reserves it produced, thus making a significant contribution towards creating employment opportunities in its operation areas, especially in the Basins of Golfo San Jorge, Austral, Neuquén and the Northeast Basin.
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