RusForest holders opt to exchange 98.6% of bonds for new shares

By Jennifer Chiou

New York, Feb. 20 - RusForest AB said that holders representing SEK 260,004,750 nominal amount, or 98.6%, of its bonds due 2018 participated in the company's debt-to-equity exchange.

As announced at the end of January, bondholders agreed to reduce the coupon of the bonds to zero and to extend the maturity to 2018 from 2014.

The principal amount and accrued interest of the bonds, issued in 2011, also was cut by about half to SEK 263.75 million at that time.

The subscription period for RusForest's debt-to-equity swap ended on Feb. 18.

Based on the acceptances, the RusForest board has authorized 6,500,118,750 newly issued shares in the form of BTAs (ISIN SE0005036373).

Following the offer, SEK 3,745,250 of bonds remains outstanding.

The exchange had a minimum 90% participation condition.

According to a news release, the transaction will continue as planned with a rights issue and directed issue, with closing anticipated by the end of March.

The total shares outstanding pro forma for the debt-to-equity swap, rights issue and directed issue is expected to be 13,203,388,040 before the 100 to 1 reverse split. The reverse split is expected to occur in the first half of April, the release added.

RusForest is a Swedish forestry company operating in eastern Siberia and the Arkhangelsk region of Russia.

© 2015 Prospect News.
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