Russia-based Alrosa unit tenders for $400 million 7¾% notes due 2020

By Wendy Van Sickle

Columbus, Ohio, March 22 – Alrosa Finance SA is tendering for up to $400 million of its $894,384,000 of outstanding 7¾% notes due 2020, according to a notice.

The issuer is offering to purchase the notes at $1,067.50 per $1,000 principal amount.

Holders will also receive accrued interest.

Notes must be tendered in minimum denominations of $200,000 and in multiples of $1,000 in excess thereof.

Alrosa is making the offer in connection with a concurrent offering of new dollar-denominated fixed-rate notes. The tender offer is conditioned upon completion of that new issue.

Priority under the tender offer will be given to noteholders who subscribe for new notes.

If the maximum tender amount is exceeded, tenders will be accepted on a pro rata basis.

“The purpose of the offer is to proactively manage Alrosa's debt portfolio, related borrowing costs and provide a degree of liquidity to noteholders,” the company said in the notice.

The tender offer will expire at noon ET on April 1.

Settlement is expected to occur on April 16.

J.P. Morgan Securities plc (+44 20 7134 2468 or em_europe_lm@jpmorgan.com), GPB-Financial Services Ltd. (499 271-9154, 495 988-2353 or liability.management@gazprombank.ru) and VTB Capital plc (+44 203 334 88029 or liability.management@vtbcapital.com) are the dealer managers.

Lucid Issuer Services Ltd. (+44 20 7704 0880 or alrosa@lucid-is.com) is the tender agent.

Alrosa Finance is a subsidiary of Mirny, Russia-based diamond mining company Alrosa Co. Ltd.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.