Russia's Transcapitalbank accepts tenders for $28.2 million 9 1/8% notes in Dutch auction

By Jennifer Chiou

New York, Feb. 25 - Transcapitalbank said it accepted tenders for $28.2 million of notes in its cash tender offer for up to $50 million of the $175 million of 9 1/8% loan participation notes due 2010 issued by TransRegionalCapital Ltd.

The purchase price is $620 per $1,000 principal amount and was set based on a modified Dutch auction. Holders will also receive accrued interest up to but excluding the settlement date, which is expected to be March 2.

The company previously 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 had tendered more than $50 million principal amount, the company would have purchased 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 expired at 10 a.m. ET on Feb. 24. It began on Feb. 17.

Transcapitalbank is a Moscow-based bank.

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