Russia’s RZD gets tenders for $259.62 million of 3.45%, 4 3/8% notes

By Susanna Moon

Chicago, May 25 – RZD Capital plc said investors tendered $167.57 million of its $500 million 3.45% loan participation notes due 2020 and $92,053,000 of its $500 million 4 3/8% loan participation notes due 2024.

The tender offers ended at 11 a.m. ET on May 25.

After settlement on May 31, the outstanding amount will be $332.43 million of 3.45% notes and $407,947,000 of 4 3/8% notes, according to a company notice Friday.

As announced May 18, the purchase price per $1,000 principal amount will be $982.5 for the 3.45% notes and $985.0 for the 4 3/8% notes.

The two series of notes were issued by RZD with limited recourse for the purpose of financing loans to JSC Russian Railways.

The tender offers were being made so that the issuer can acquire the outstanding notes, which reflects the company's “robust liquidity position” and is consistent with its liability management aims, according to a previous company announcement.

The offers also give noteholders a chance to gain liquidity for their notes that might not otherwise be available, the company added.

J.P. Morgan Securities plc and VTB Capital plc are the joint dealer managers.

The joint dealer managers are J.P. Morgan Securities plc (+44 20 7134 2468 or em_europe_lm@jpmorgan.com) and VTB Capital plc (+44 203 334 8029 or liability.management@vtbcapital.com).

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

Russian Railways is a state-owned railway company based in Moscow.

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