Kazakhstan’s Nostrum begins capped tender for Zhaikmunai notes

By Susanna Moon

Chicago, June 29 – Nostrum Oil & Gas LP’s subsidiary Nostrum Oil & Gas Finance BV began tender offers for a capped amount of Zhaikmunai LLP’s outstanding 6 3/8% senior notes due Feb. 14, 2019 and 7 1/8% senior notes due Nov. 13, 2019.

Nostrum is also soliciting consents to amend the notes to align the covenants with those to be contained in the company’s planned new notes, according to a notice.

The purchase amount in the tenders will depend on the amount of the new issue, the release added.

The total purchase price for each $1,000 principal amount will be as follows, with the notes listed in order of priority acceptance levels:

• $560 million of 7 1/8% senior notes due 2019 with a total purchase price of $1,016, which includes an early tender premium of $40.00 and a consent payment of $4.00; and

• $400 million of 6 3/8% senior notes due 2019 with a total purchase price of $1,006, which includes an early tender premium of $30.00 and a consent payment of $4.00.

The company also will pay accrued interest up to but excluding the settlement date.

The offers will end at 11:59 p.m. ET on July 27 and the early tender deadline is 5 p.m. ET on July 13.

Holders who tender their notes before the early deadline will receive the total purchase price, which includes an early tender premium.

Nostrum plans to price an issue of new bonds guaranteed on a senior basis by Nostrum Oil & Gas PLC and Zhaikmunai LLP.

The company said it is making the offers to extend the group’s debt maturity profile.

If the amendments and waiver are passed for a note series, holders who send tender instructions or consent-only instructions before the early deadline will receive a consent payment of $4.00 per $1,000 principal amount.

Citibank NA, London Branch (+44 20 7508 3867) is the tender agent. Citigroup Global Markets Ltd. (+44 20 7986 8969, 800 558-3745 or 212 723-6106) and VTB Capital plc (+44 20 3334 8029) are the dealer managers.

Uralsk, Kazakhstan-based Nostrum is an oil and gas exploration and production company that has interests in northwestern Kazakhstan.

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