Russia’s RZD accepts tenders for all $515.53 million of three series

By Susanna Moon

Chicago, Sept. 24 – RZD Capital plc said it will accept for purchase all $515.53 million of the notes tendered in the offer that ran until 11 a.m. ET on Sept. 21.

As announced Sept. 12, the company was offering to pay up to $700 million excluding accrued interest to repurchase the notes issued for the purpose of financing loans to JSC Russian Railways.

Investors had tendered notes in the offer as follows with a purchase price per $1,000 principal amount:

• $63,501,000 of the $332.43 million outstanding $500 million 3.45% loan participation notes due 2020 with a purchase price of $990;

• $439,982,000 of the $1.4 billion 5.7% loan participation notes due 2022 with a purchase price of $1,024; and

• $12,046,000 of the $407,947,000 outstanding $500 million 4 3/8% loan participation notes due 2024 with a purchase price of $972.

After settlement on Oct. 3, the outstanding amount will be $268,929,000 for the 3.45% notes, $960,018,000 for the 5.7% notes and $395,901,000 for the 4 3/8% notes.

“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 a previous 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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.