Argentina is seeking to make its long-awaited comeback to the international bond market in the coming month. Argentina seeks to raise about $12 billion to go towards clearing its outstanding holdout debts.
According to officials from the Finance Ministry, Argentina has plans to raise $11.68 billion from bonds, which are projected to yield 7.5 to 8 percent. The bonds issue is meant to take place in mid-April. Finance Ministry officials presented a debt bill to Congress that seeks to settle a deal with a majority of the holdouts. The bonds will be sold in three different categories, with maturity dates of 5, 10, and 30 years respectively.
One of the companies seeking to benefit from this deal is none other than Highland Capital. The asset management firm with an asset base of $19 billion under its management mainly deals in emerging market credit funds and credit hedge funds. According to the founder and CEO, James Dondero, the Dallas-based firm will not be getting into the Argentinian market for the first time. The firm has been among the biggest holders of Argentina’s notes due in 2033.
The Argentinian officials are reading good signs from Highland’s gesture to invest in the new bonds. It is a sign that a majority of the so-called distressed debt investors may remain buyers of the country’s debt. Argentina plans to sell part of its debt to settle with its holdout creditors, among them billionaire Paul Singer.
Speaking from Dallas, James was optimistic on where Argentina was likely to price the debt. He said this as he revealed that
Highland was intending to purchase some of the new issuance as well as holding on to the original bonds. When compared to other Latin American nations, James was of the opinion that Argentina would perform better, hence price the bonds favorably.
James Dondero is a 52-year-old financial expert. He is the founder and CEO of Highland Capital management. He graduated from University of Virginia with a Bachelor of Science degree in accounting and finance. Jim is a Certified Management Accountant and a Chartered Financial Analyst.
James undertook a financial training program at JP Morgan before proceeding to begin his career at American Express. He later moved on to Protective Life’s GIC subsidiary as a Chief Investment Officer before starting his own outfit, Highland Capital. In all his working years, James has had a successful career, always making a positive impact wherever he goes.