Uralkali plans to pay up to $1.1 billion to repurchase BO-01 exchange-traded bonds Aug. 22

By Toni Weeks

San Diego, Aug. 5 - Uralkali said its board of directors decided at its Aug. 5 meeting to buy back the company's debut BO-01 exchange-traded bonds for up to $1.1 billion, according to a company announcement with the London Stock Exchange.

The bonds will be repurchased Aug. 22 at 103.

Following this, the company will terminate its cross-currency interest rate swap transaction, thereby hedging its ruble bond obligations. The company will achieve a positive financial result from the transaction due to the change in the U.S. dollar exchange rate.

The BO-01 bonds were first traded in February 2011, with the proceeds helping Uralkali to finance its acquisition of Silvinit during the merger of the two companies.

"The aim of the bond buyback is to optimize the capital structure and price of the credit portfolio of the combined Uralkali," chief executive officer Vladislav Baumgernter said in the announcement. "Current capital market conditions are favorable for the company, with rising potash sales volumes, a strong pricing policy and increasing production and profitability."

The potash fertilizer company is based in Perm Krai, Russia.

© 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.