Russia’s TMK buys back $91.18 million 7¾% notes under Dutch auction

By Susanna Moon

Chicago, Nov. 10 – TMK Capital SA investors had tendered $168,002,000 of its $500 million of 7¾% loan participation notes due 2018 by the end of the modified Dutch auction offer at 11 a.m. ET on Nov. 9.

Of the tendered amount, TMK accepted for purchase $91.18 million of the notes tendered below the purchase price of $1,032.50 per $1,000 principal amount, according to a company notice.

The company said it accepted all of the notes tendered at or below the purchase price without proration.

After settlement on Nov. 13, there will be $408.82 million of the notes left outstanding.

TMK said on Oct. 29 that it was tendering for up to $200 million of the 7¾% notes issued for the purpose of financing a loan to PAO TMK.

The minimum purchase price was $1,025 per $1,000 principal amount, with pricing set under a modified Dutch auction.

The company also will pay accrued interest.

The maximum acceptance amount was announced at $200 million, but the issuer previously said it could opt to purchase less than or more than that amount.

Citigroup Global Markets Ltd. (+44 20 7986 8969 or liabilitymanagement.europe@citi.com) and J.P. Morgan Securities plc (+44 20 7134 2468 or em_europe_lm@jpmorgan.com) are the joint dealer managers.

Citibank, NA, London Branch (debtxportal.issuerservices.citigroup.com, +44 207 508 3867 exchange.gats@citi.com) is the tender agent.

The purpose of the offer is to reduce the group’s dollar-denominated debt, the company previously said.

TMK is a steel pipe manufacturer based in Moscow.

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