Russia’s RZD holds $700 million tender offer for three note series

By Susanna Moon

Chicago, Sept. 12 – RZD Capital plc said it is offering to pay up to $700 million in a tender offer for three series of its notes until 11 a.m. ET on Sept. 21.

The notes covered by the tender offer are as follows with a purchase price per $1,000 principal amount:

• $332.43 million of outstanding $500 million 3.45% loan participation notes due 2020 with a purchase price of $990;

• $1.4 billion 5.7% loan participation notes due 2022 with a purchase price of $1,024; and

• $407,947,000 of outstanding $500 million 4 3/8% loan participation notes due 2024 with a purchase price of $972.

The tender offer cap of $700 million excludes accrued interest.

The notes were issued for the purpose of financing loans to JSC Russian Railways.

“The purpose of the offers is to enable the offeror to acquire certain outstanding notes, which is reflective of the company’s robust liquidity position and consistent with its ongoing liability management objectives,” according to the company announcement.

The offers will allow noteholders to gain some liquidity that might not otherwise be available to them, the company added.

The joint dealer managers are J.P. Morgan Securities plc (+44 20 7134 2468 or em_europe_lm@jpmorgan.com) and VTB Capital plc (+44 20 3334 8029 or liability.management@vtbcapital.com).

The tender agent is Lucid Issuer Services Ltd. (+44 20 7704 0880 or rzd@lucid-is.com).

Russian Railways is a state-owned railway company based in Moscow.

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