KazMunayGas aims to align 10 note issues with most recent 2017 series

By Susanna Moon

Chicago, June 20 – JSC NC KazMunayGas as issuer and KazMunaiGaz Finance Sub BV began soliciting consents for several series of notes.

The notes covered by the consent solicitation are as follows, with an early consent fee per $1,000 principal amount:

• $1.6 billion 9 1/8% notes due 2018 with an early consent fee of $1.50;

• $1,371,437,000 of outstanding $1.5 billion 7% notes due 2020 with an early consent fee of $2.50;

• $1,130,274,000 of outstanding $1.25 billion 6 3/8% notes due 2021 with an early consent fee of $2.50;

• $500 million 3 7/8% notes due 2022 with an early consent fee of $2.50;

• $406,564,000 of outstanding $1 billion 4.4% notes due 2023 with an early consent fee of $2.50;

• $123,177,000 of outstanding $500 million 4 7/8% notes due 2025 with an early consent fee of $2.50;

• $1 billion 4Ύ% notes due 2027 with an early consent fee of $2.50;

• $512,249,000 of outstanding $2 billion 5Ύ% notes due 2043 with an early consent fee of $3.00;

• $30,112,000 of outstanding $1 billion 6% notes due 2044 with an early consent fee of $3.00; and

• $1.25 billion 5Ύ% notes due 2047 with an early consent fee of $3.00.

The issuer also has scheduled meetings for July 12 in London to ask holders to amend the notes.

“Following a successful issuance of notes in 2017, [the issuer] proposes to align the terms and conditions of its notes with the terms of capital markets debt issued by other vertically integrated oil and gas groups and/or state-owned companies with long-term credit ratings comparable to KMG,” according to a company announcement.

“At the time of KMG's most recent notes issuances in April 2017, KMG's focus was on the placement of the 2017 issued notes. The current consent solicitation is intended to modify both the notes issued in 2017 and those series of notes issued previously. Additionally, certain changes are intended to make the terms and conditions consistent across all series.”

The early consent deadline is 5 p.m. ET on June 30. The final consent deadline is 11 a.m. ET on July 7. Settlement has been set for July 19.

The record date is June 29.

Noteholders who submit electronic voting instructions or forms of sub-proxy in favor of the proposals by the early deadline will receive the early consent fee if the amendments are approved.

The solicitation agents are Citigroup Global Markets Ltd. (+44 20 7986 8969 or liabilitymanagement.europe@citi.com) and Credit Suisse Securities (Europe) Ltd. (+44 20 7883 8763 or liability.management@credit-suisse.com).

The tabulation agent is Lucid Issuers Services Ltd. (David Shilson / Alexander Yangaev at +44 20 7704 0880 or kmg@lucid-is.com).

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

© 2015 Prospect News.
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