Russia’s MegaFon has closed subscriptions for its Rbs20bn (US$652.5m) bonds, with the coupon set at 8% for the first five years.
The ten-year series 06 and series 07 rouble-denominated bonds each amount to Rbs10bn (US$326.24m), the London and…
Russia’s MegaFon has closed subscriptions for its Rbs20bn (US$652.5m) bonds, with the coupon set at 8% for the first five years.
The ten-year series 06 and series 07 rouble-denominated bonds each amount to Rbs10bn (US$326.24m), the London and Moscow-listed telco announced.
Five years after placement, the coupon rate will be revised and a put option may be exercised.
Moscow-based MegaFon, which completed its IPO in November last year, said the transaction generated “substantial interest” from investors, allowing the coupon to be set at the lower end of the initial guidance of 8-8.25% per annum.
Bonds will be allocated on the Moscow Stock Exchange on 13 March 2013.
Commenting on the transaction, MegaFon CFO Gevork Vermishyan said: “We believe the high level of interest from investors reflects both our strong financial position evidenced by our recently-published 2012 year-end results and their confidence in the sustainability of our business.
“The company will benefit from reduced interest expense and, through applying the proceeds of the new bonds solely to refinancing, we will continue to fulfil our long-term commitment to diversifying and enhancing our debt profile”.
Raiffeisenbank, Sberbank and VTB Capital are lead managers for the transaction, with Sberbank also acting as placing agent.
MegaFon reported consolidated revenues of Rbs272.64bn (US$8.89bn)) for the year 2012 – a 12% increase year-on-year. OIBDA was up 16.4% to Rbs117.36bn (US$3.83bn), while net debt stood at Rbs127.79bn (US$4.12bn).
MegaFon shares reached their highest ever level on the LSE today, reaching US$30.66. At the time of writing, shares were trading at US$30.32.
