Kiev offers Ukraine 7¾% bonds in exchange for 8% notes, 9 3/8% notes

By Susanna Moon

Chicago, Nov. 24 – The City of Kiev, acting through the finance department, said it began an exchange offer for the $250 million 8% loan participation notes due 2015 issued by Credit Suisse International and $300 million 9 3/8% loan participation notes due 2016 issued by Kiev Finance plc.

The notes were issued for the purpose of funding loans to the city council.

In exchange, Kiev is offering new 7¾% bonds due 2019 and 2020 to be issued by Ukraine and GDP-linked securities to be issued by Ukraine, according to a government notice.

Kiev also is soliciting consents from holders of the 2016 notes to approve the mandatory exchange of all of the notes for sovereign notes and GDP-linked securities.

Under the exchange offer, holders are being asked to exchange their notes for

• Sovereign notes, which will be split equally between notes maturing in 2019 and 2020, with a principal amount equal to the sum of 75% of par and accrued interest through Nov. 2; and

• GDP-linked securities with a notional amount of $250, except for holders of 2016 notes who do not participate in the exchange offer or consent to the solicitation terms who will instead receive GDP-linked securities with a notional amount of $220 if the consent solicitation is implemented.

Holders who are not eligible to receive the sovereign notes or GDP-linked securities will instead receive the cash proceeds of a sale of sovereign securities and GDP-linked securities that otherwise would have been given to those holders.

For the 2015 notes, the exchange offer instructions must be submitted by 5 a.m. ET on Dec. 8. For the 2016 notes, holders have until 5 a.m. ET on Dec. 4 to submit participation instructions.

If the meeting for 2016 noteholders is on Dec. 8 and the consent solicitation is granted, settlement of the proposed exchange will occur on Dec. 17.

Goldman Sachs International (+44 207 774 9862 or liabilitymanagement.eu@gs.com) is the dealer manager.

Questions may go to Bank of New York Mellon in London, the settlement and tabulation agent, at +44 0 1202 689 644 or debtrestructuring@bnymellon.com.

D.F. King is the information agent (sites.dfkingltd.com/kiev).

© 2015 Prospect News.
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