Kazakhstan’s KazMunayGas announces tender offers, consent bids for two note series

By Rebecca Melvin

New York, Sept. 23 – KazMunayGas said it has initiated cash tender offers and consent solicitations regarding its $500 million 3 7/8% notes due 2022 (ISINs: XS1595713279, US48667QAM78) and $1 billion of 4.4% notes due 2023, of which $406,564,000 remains outstanding (ISINs: XS0925015074, US46639UAA34).

The company is asking holders to consent to amendments to the notes providing for mandatory early redemption, according to a company’s notifications to the London Stock Exchange.

The actions are being undertaken by JSC NC “Kazmunaygas” and KMG Finance Sub BV.

The tender offer consideration for the 2022 notes is $1,017.50 per $1,000 note, and the tender offer consideration for the 2023 notes is $1,043.50.

There is an early tender premium of $30 per $1,000 note for both issues if holders tender by the early participation deadline at 5 p.m. ET on Oct. 6. The offers expire at 5 a.m. ET on Oct. 26.

The company is concurrently issuing new U.S. dollar-denominated notes, which is a financing condition for the tender offers.

Holders who tender their old notes will be given preference in the allocation of the new notes.

The results will be announced on Oct. 28.

The companies said the rationale for the actions is to permit the Group to manage its debt redemptions, cost of debt and to extend its debt maturity profile.

Lucid Issuer Services Ltd. (+44 207 704 0880, kmg@lucid-is.com) is the tender and tabulation agent.

The dealer managers and solicitation agents are J.P. Morgan Securities plc (+44 20 7134 2468, em_europe_lm@jpmorgan.com), MUFG Securities EMEA (+44 20 7577 4145, liability.management@mufgsecurities.com), JSC Halyk Finance (+7-727-311-5977, IB@halykfinance.kz), and SkyBridge Invest (+7-727-331-3350, buirakulova@sbinvest.kz.)

KazMunayGas is an Astana, Kazakhstan-based state-owned oil and gas company.

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