Kazkommertsbank starts another consent bid to amend 5½% notes due 2022

By Susanna Moon

Chicago, June 5 – JSC Kazkommertsbank said it began another consent solicitation for its $750 million of 5½% notes due 2022 after failing to get the 75% threshold required in the solicitation that ended in May.

As before, the company is seeking to amend the $1,592,000,000 4% loan due 2024 made by Samruk-Kazyna to JSC BTA Bank.

The amendment would substitute Kazkommertsbank for BTA as borrower, according to a company notice.

The early solicitation deadline is 11 a.m. ET on June 19, and the solicitation deadline is 11 a.m. ET on June 25.

A meeting for noteholders has been set for June 29.

Holders who delivered consents by the early solicitation deadline will receive a fee of $2.50 per $1,000 principal amount.

Those who submit consents after the early deadline will receive a fee of $1.00 per $1,000 principal amount.

Noteholders who attend and vote at the meeting will not be eligible to receive the early consent fee or the consent fee, the company said.

J.P. Morgan Securities plc (+44 207 134 2468 or em_europe_lm@jpmorgan.com) is solicitation agent. D.F. King Ltd. (+44 20 7920 9700, kkb@dfkingltd.com) is tabulation agent and information agent.

Recent consent bid

As previously reported, at the meeting held May 28, holders represented about 89% of the outstanding notes and, of those cast, about 72.7% voted in favor of the proposal.

To make the changes, Kazkommertsbank needed the approval of 75% of the votes cast, and at least a majority of the notes needed to be represented at the meeting.

The early deadline was extended to coincide with the expiration of the offer at 10 a.m. ET on May 26. Previously consents had to be delivered by 10 a.m. ET on May 19 to qualify for the additional early fee.

Noteholders were asked to acknowledge that the substitution will not result in any violation of the terms of the notes.

Holders who delivered consents by the early solicitation deadline of 10 a.m. ET on May 19 – which was extended – would have received a fee of $2.50 per $1,000 principal amount.

Consents submitted after the early deadline would have received a fee of $1.00 per $1,000 principal amount.

Kazkommertsbank is based in Almaty, Kazakhstan.

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