KazAgro gets consents to amend 2019, 2023 notes, wraps tender offer

By Marisa Wong

Morgantown, W.Va., Aug. 7 – JSC KazAgro National Management Holding announced the results of its tender offer and consent solicitations for two series of notes that began on July 6.

KazAgro invited holders of its outstanding €600 million 3.255% notes due 2019 to tender up to €500 million of the notes for purchase for cash and to consent to amendments to the terms and conditions of the 2019 notes and also invited holders of its outstanding $1 billion 4 5/8% notes due 2023 to consent to changes to the 2023 notes.

As of the expiration deadline at 5 a.m. ET on Aug. 3, KazAgro received tenders for €420,442,000 of the 2019 notes. The company said it intends to purchase all of the tendered notes.

The issuer offered to purchase the 2019 notes at €1,015 per €1,000 principal amount. Holders who tendered by the early participation deadline at 11:59 p.m. ET on July 19 are also eligible to receive an early tender offer consideration of €10 per €1,000 principal amount.

The company also announced on Tuesday that holders of the 2019 and 2023 notes approved the respective proposed amendments at bondholder meetings held on Aug. 7. The company signed supplemental agreements effecting the changes on Tuesday.

The company will pay a consent fee to holders who submitted tender instructions by the early participation deadline. The issuer offered a consent fee of €5 per €1,000 principal amount of 2019 notes and $15 per $1,000 principal amount of 2023 notes.

Settlement is slated for Aug. 10.

Citigroup Global Markets Ltd. (attn.: liability management group, +44 20 7986 8969, liabilitymanagement.europe@citi.com) is the dealer manager for the offers. Citibank, NA, London Branch (attn.: LM Team – Agency and Trust, +44 20 7508 3867, citiexchanges@citi.com) is the tender and tabulation agent.

KazAgro supports government grain reserves, provides loans and invests in financial leasing in the agricultural sector. The issuer is based in Astana, Kazakhstan.

© 2015 Prospect News.
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