Credit Bank of Moscow tenders for $200 million notes from five series

By Marisa Wong

Los Angeles, March 20 – CBOM Finance plc has launched, on behalf of Credit Bank of Moscow, cash tender offers for up to $200 million of loan participation notes from five series under modified Dutch auction procedures.

CBOM is inviting holders to tender notes from the following series, listed with the minimum purchase per $1,000 or €1,000 principal amount:

• $500 million 5 7/8% loan participation notes due 2021 (ISIN: XS1510534677), of which $375 million notes remain outstanding, with a minimum purchase price of $910;

• $500 million 5.55% loan participation notes due 2023 (ISIN: XS1759801720), of which $375 million notes remain outstanding, with a minimum purchase price of $840;

• $500 million 7.121% loan participation notes due 2024 (ISIN: XS1964558339), of which $350 million notes remain outstanding, with a minimum purchase price of $830;

• €500 million 5.15% loan participation notes due 2024 (ISIN: XS1951067039), of which €400 million notes remain outstanding, with a minimum purchase price of €830; and

• $600 million 4.7% loan participation notes due 2025 (ISIN: XS2099763075), all of which remain outstanding, with a minimum purchase price of $720.

Noteholders may make their offers in the form of competitive offers or non-competitive offers.

A competitive offer must specify (i) the price per $1,000 or €1,000 principal amount, in increments of $1.25 or €1.25 above the minimum purchase price, that a noteholder would be willing to accept as the purchase price for a series of notes and (ii) the amount of notes that a noteholder is tendering at that offer price.

Alternatively, holders may submit a non-competitive offer that does not specify an offer price or specifies an offer price equal to the minimum purchase price.

In either case, holders will also receive accrued interest.

Once CBOM has determined the purchase price for each series, it will accept offers in the following order, subject to proration: first, all non-competitive offers; second, all competitive offers that specify offer prices lower than the applicable purchase price; and third, all competitive offers that specify offer prices equal to the purchase price.

The offer expires at noon ET on March 26. Results, including pricing, will be announced on March 27. Settlement is expected to be on March 31.

Citigroup Global Markets Ltd. (+44 20 7986 8969, liabilitymanagement.europe@citi.com) and Societe Generale (+44 20 7676 7951, liability.management@sgcib.com) are the dealer managers. Lucid Issuer Services Ltd. (+44 20 7704 0880, mkb@lucid-is.com) is the tender agent.

The Moscow-based lender said the purpose of the offer is to take advantage of its liquidity position and current market volatility to proactively manage its liabilities.

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