Russian telco MegaFon has opened the subscription books for exchange bonds of up to Rbs15bn (US$431.25m).
The series BO-04 exchange bonds will have a term of 10 years after placement, subject to a put option exercisable on the first anniversary.
The…
Russian telco MegaFon has opened the subscription books for exchange bonds of up to Rbs15bn (US$431.25m).
The series BO-04 exchange bonds will have a term of 10 years after placement, subject to a put option exercisable on the first anniversary.
The marketing coupon range is set at 9.8% to 10% per annum and will be finally determined via the bookbuilding process. Books are expected to close on Thursday 15 May the latest. Placement in the unlisted securities section of the Moscow Stock Exchange is expected on about 20 May.
Proceeds of the bonds, are to be used for general corporate purposes, including the refinancing of existing debt.
Gazprombank, Raiffeisenbank and UniCredit Bank are the lead arrangers for the issue. Gazprombank is also the placing agent.
The issue forms part of a five-series bond programme worth a total Rbs60bn (US$1.9bn), admitted to trading on the Moscow exchange on 27 June 2013. Approved by the MegaFon board last May, the bond programme is designed to improve the company’s debt profile and meet refinancing targets. The company’s last bond – worth Rbs20bn (US$652.5m) – was placed in March 2013.
