Eurasia Capital begins exchange offer for its $200 million 9½% notes due 2010

By Susanna Moon

Chicago, July 22 - Eurasia Capital SA said bondholders may exchange their 9½% loan participation notes due 2010 for new dollar-denominated loan participation notes due 2011.

In the exchange offer for the $200 million of 9½% notes, holders may exchange their notes at the base exchange ratio or the special exchange ratio.

The company said holders will benefit from a yield uplift represented by the base or special fixed yield differential and will extend the maturity by four months to Aug. 11, 2010, the new note's put date.

The base exchange ratio and special exchange ratio are calculated by dividing the base exchange price or special exchange price, respectively, by 100%, which will be the price of the new notes at issue priced to the new note put date.

The exchange prices will be the price of the existing notes when discounted at a semiannual yield equal to the new coupon less the base or special fixed yield differential.

Eurasia may issue additional new notes on the settlement date, with a minimum total size of $250 million.

The issuer said it would apply to list the notes for trading on the London Stock Exchange.

ABN Amro Bank NV (44 20 7678-3976, attn: fixed-income syndicate), Calyon (44 20 7767-5107, attn: DCM syndicate) and ING Bank NV, London branch (44 20 7678-3976, attn: global debt syndicate) are the dealer managers.

Bank of New York Mellon and Bank of New York (Luxembourg) SA are the exchange agents. Bank of New York Mellon is the principal paying agent.

Eurasia Capital is a Luxembourg-based special-purpose vehicle created to fund loans to Moscow-based Home Credit and Finance Bank Ltd.

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