Argentina is set to return to the international bond market mid-April this year. The country is seeking to raise close to $12 billion through the sale of bonds. Highland Capital Management LP will definitely be one of the buyers and the country will not have to look for buyers for long.
The firm is based in Dallas and deals with asset management and oversees $19 billion in hedge funds. Its co-founder and the president, James Dondero, promises that the firm will acquire large amounts of the bonds. The firm once held the biggest share of Argentina’s $4 billion of securities which were to mature in 2033. However, the firm has significantly reduced its holdings for the past six months.
Argentinian Finance Minister, Luis Caputo, explained that the country plans to issue a total of $11.68 billion of bonds that are estimated to yield 7.5 to 8 percent. The officials from the Finance Ministry told the Congress this as they presented a debt bill which is meant to pave way for a deal with most holdouts. The country is planning to sell three bonds maturing in 5, 10 and 30 years. The government plans to issue the debts under the New York law.
Mauricio Macri, the Argentinian President, has been quick in the efforts to regain the access of the market and also make significant reforms to the policies of Cristina Fernandez, his predecessor. For a long time, Argentina has been left out of the global markets and as a result, the holders of restructured foreign-law bonds it has offered have not been paid because of the cessation of July 2014. The U.S. District Judge, Thomas Griesa, is expected to lift the ban that barred Argentina from paying for its restructured securities. Highland Capital Management will be one of the biggest beneficiaries.
About James Dondero
James Dondero is the president of Highland Capital management. He lives in Dallas, Texas and he manages the investment strategies and operations of the firm. James has worked in the credit market for more than 30 years and he has garnered massive experience in the process.
Jim Dondero, as he is best known, graduated from the University of Virginia majoring on accounting and finance. He is a Certified Management Accountant (CMA) and has been granted the right to use the Chartered Financial Analyst (CFA) designation. Jim has also worked as the Chief Investment Officer for Protective Life’s GIC subsidiary company where he oversaw the growth of the business from startup to a massive $2 billion entity within just five years.
Originally reported on Bloomberg Business http://www.bloomberg.com/news/articles/2016-03-08/argentina-luring-highland-shows-distressed-bond-buyers-to-stay