By Evan Weinberger
New York, Oct. 19 - ZAO IFD Kapital Group priced $1.25 billion in DECS due Nov. 17, 2010 Thursday. The DECS have a coupon of 6.75% and are exchangeable into 20.155 million American Depository Receipts of OAO Lukoil.
The DECS have an upper strike of 148% and a lower strike of 70%. The coupon had been talked at 6% to 6.75% and the upper strike at 148% to 152%.
Citigroup Global Markets Ltd. is the bookrunner of the Regulation S transaction.
The DECS are being offered through Cayman Exchangeable Funding Ltd., a newly organized company incorporated in the Cayman Islands. There is a $125 million greenshoe.
The DECS are backed by zero-coupon U.S. Treasuries and an agreement with counterparties to the new issue. The settlement date is Oct. 24.
There are standard anti-dilution protections and no negative pledge. There is a cash settlement option.
ZAO IFD Kapital is a Moscow-based investment group owned by Lukoil executives Vagit Alekperov and Leonid Fedun. Lukoil plans to use the proceeds to partially fund Lukoil's purchase of Russian utility firm OAO TGK-8.
Issuer: ZAO IFD Kapital Group
Issue: DECS
| Underlying shares: | ADS of OAO Lukoil
|
| Amount: | $1.25 billion
|
| Greenshoe: | $125 million
|
| Maturity: | Nov. 17, 2010
|
| Coupon: | 6.75%
|
| Price: | Par
|
| Yield: | 6.75%
|
| Upper strike: | 148%
|
| Lower strike: | 70%
|
| Exchange ratio: | 20.155 million ADS of OAO Lukoil
|
| Bookrunner: | Citigroup Global Markets Ltd.
|
| Distribution: | Regulation S
|
| Talk: | 6%-6.75% coupon, 148%-152% upper strike
|
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