Ukraine’s PrivatBank extends consent solicitation for 9 3/8% notes

By Angela McDaniels

Tacoma, Wash., Aug. 14 – PJSC Commercial Bank PrivatBank said a quorum was not formed at the Aug. 13 meeting to vote on changes to UK SPV Credit Finance plc’s $200 million 9 3/8% loan participation notes and so was adjourned to11 a.m. ET Aug. 27.

As previously reported, the issuer is seeking to extend the maturity date of the notes to Dec. 1, 2015 from Sept. 23, 2015, among other changes.

The holders of at least two-thirds of the notes had to be represented at the meeting on Aug. 13 in order to form a quorum.

At the adjourned meeting, the holders of at least one-third of the notes must be represented in order to form a quorum. At least three-quarters of the votes cast must be in favor of the proposal in order for it to pass.

Holders who wish to vote electronically are asked to do so by 11 a.m. ET on Aug. 24.

As previously reported, the company held a consent solicitation for the notes and its $150 million 5.799% loan participation notes due 2016. Noteholders voted at meetings held on July 13.

Holders of the 9 3/8% notes delivered the necessary consents to amend those notes, but holders of the 5.799% notes did not. Because approval by holders of the 5.799% notes was a condition to completion of the amendment of the 9 3/8% notes, neither consent solicitation was completed.

Under the failed consent solicitation, the company was seeking to extend the repayment date of the 9 3/8% notes to Jan. 23, 2018 from Sept. 23, 2015 and to add an amortized repayment provision and a corresponding amortized redemption provision, consisting of a repayment of 30% of the principal amount remaining on Sept. 23, 2017 and 70% of the principal amount remaining on Jan. 23, 2018. It offered to increase the coupon to 10%.

The company began the current consent solicitation on July 29.

The solicitation agent is Commerzbank AG (+49 69 136 59920 or liability.management@commerzbank.com). The tabulation agent is Lucid Issuer Services Ltd. (+44 (0) 20 7704 0880 or privatbank@lucid-is.com).

PrivatBank is a lender based in Dnipropetrovsk, Ukraine.

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