Russia's Kazanorgsintez begins tender offer, consent solicitation for 9¼% loan participation notes

By Angela McDaniels

Tacoma, Wash., March 1 - Kazanorgsintez SA has begun a tender offer and consent solicitation for the $200 million of 9¼% loan participation notes due Oct. 30, 2011 it issued to finance a loan to Kazan OJSC, according to a company news release.

Holders are being offered $900 per $1,000 principal amount of notes plus accrued interest up to but excluding the settlement date.

In the consent solicitation, the company is seeking:

• To change the maturity date of the notes and the repayment date under the loan to five years after the tender offer's settlement date;

• To increase the interest rate on the notes and loan to 10%;

• To remove some covenants from the loan agreement;

• A waiver of any event of default occurring under the loan agreement prior to March 16; and

• Some amendments to the loan and notes to allow for the loan to be prepaid in order to enable the issuer to purchase notes in the tender offer.

Noteholders will vote on the proposed changes at two meetings in London on March 16. The first meeting will take place at 11:30 a.m. ET, and the second meeting will take place at noon ET.

The tender offer is conditioned on the company receiving bondholder approval to make the changes.

Noteholders who tender will be deemed to have appointed the tender and tabulation agent as their proxy to attend the meetings and vote in favor of the changes.

The tender offer will end at 11 a.m. ET on March 12.

The dealer manager is ING Bank NV, London Branch (debt.syndicate@uk.ing.com). The tender and tabulation agent is Bank of New York Mellon (+44 0 20 7964 4958 or eventsadmin@bnymellon.com).

Kazan is a chemical company based in Kazan, Russia.

© 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.