Rizobacter swaps $42.68M in debt, pushes maturities to 2029
What's the deal? Rizobacter Argentina, an agricultural microbiology firm owned by Bioceres Crop Solutions, secured 86% bondholder support for a debt swap worth roughly $42.68M. The deal replaces bonds maturing in 2026–2027 with new notes due September 2029, carrying a 9% annual rate.
This is Rizobacter's second consecutive capital markets operation. Weeks earlier, it completed a smaller swap of about $3.8M in bonds with over 75% adhesion, also pushing maturities to 2029. Combined, the two deals restructure more than $46M in near-term obligations.
"This result reflects the market's confidence in the company and the path we've been on," said Gerónimo Watson, a director at Rizobacter. The deal includes an upfront payment to participating bondholders equal to 20% of the principal, due June 28.
Why now? In February, Rizobacter missed a $5M bond payment, triggering negotiations with creditors. That default set off a broader restructuring effort spanning both capital markets debt and bank loans.
The company needed at least 70% bondholder participation in each series to proceed. The 86% result cleared that threshold comfortably, enabling issuance of new Series XI bonds in three classes.
What could go wrong? Rizobacter has bought time, but it hasn't reduced its debt — it has pushed it further out. If operating conditions in Argentine agriculture deteriorate, or if the company's revenue doesn't grow enough by 2029, the same liquidity pressures could resurface.
The company also still needs to finalise agreements with its banking creditors. While it says it has reached deals with a "substantial" portion of those lenders, the restructuring remains incomplete.
The signal: The deal illustrates a broader pattern among Argentine agri-businesses navigating tight capital markets and volatile macroeconomic conditions. Companies are leaning on liability management — swapping short-dated debt for longer maturities — rather than raising fresh capital or deleveraging outright. For Rizobacter, the high adhesion rate suggests creditors prefer patience over confrontation, betting that the firm's biological crop solutions business can generate enough cash flow to service restructured obligations over a longer horizon.
Read more: lanacion.com.ar
