Russia's Transcapitalbank tenders for $50 million 9 1/8% notes in Dutch auction

By Susanna Moon

Chicago, Feb. 17 - Transcapitalbank said it began a cash tender offer for up to $50 million of the $175 million 9 1/8% loan participation notes due 2010 issued by TransRegionalCapital Ltd.

Pricing will be set based on a modified Dutch auction.

The company said it believes that at current market levels, its debt represents an attractive investment opportunity and it plans to use some of its balance sheet cash to purchase outstanding debt.

If investors tender more than $50 million principal amount, the company will purchase notes in the following order of priority: first, notes tendered on a non-competitive basis; second, notes tendered at below the purchase price; and third, notes tendered at the purchase price.

The offer will expire at 10 a.m. ET on Feb. 24.

The Moscow-based bank said it will pay the purchase price plus accrued interest to the settlement date.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.