Russia-focused Borets starts consent solicitation for 6% notes due 2026

Chicago, July 11 – United Arab Emirates’ Borets Finance DAC started a consent solicitation on Monday for its $350 million outstanding 6% guaranteed notes due 2026 (ISINs: XS2230649225, US09973BAB53), according to a release.

The purpose of the consent solicitation is multifold.

The solicitation would replace the trustee with i2 Capital Trust Corp. Ltd. instead of BNY Mellon Corporate Trustee Services Ltd.

The company is also seeking to extend the grace period for the next interest payment due on Sept. 17. The grace period would be extended to 60 days from 14 days. Borets intends to make the interest payment, but there could be a delay due to technical disruptions or legal restrictions.

Borets is also considering making changes to its organizational structure. The change would bifurcate the company into two separate business divisions under a new holding company, a wholly owned subsidiary of Tangent. The two parts would be a non-Russian business which will be represented by the parent and its non-Russian subsidiaries and then a Russian business division which would be represented by OOO Proizvodstvennaya Kompaniya Borets and its Russian subsidiaries.

Consents must be received from noteholders holding a majority in principal amount of the notes.

There will be no consent fee payable for the consent solicitation.

Valid consent instructions are due by July 19, also the record date. Consents are irrevocable.

The deadline is 11 a.m. ET on July 22.

The information and tabulation agent is i2 Capital Markets Ltd. (+44 203 633 1212, boretsconsent@i2capmark.com, https://i2capmark.com/event-details/64/ Holder/borets-finance-dac-2026-notes).

Russia-focused Borets Finance is a subsidiary of Borets International Ltd., which makes electrical submersible pumps for the oil and gas industry and has its global headquarters in Dubai.

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