Russian Standard, holders rework restructuring for 13%, 11½% notes

By Susanna Moon

Chicago, Oct. 9 – JSC Russian Standard Bank said it worked with a group of noteholders to revise its restructuring proposal for the $350 million 13% loan participation notes due April 2020 and $200 million 11½% loan participation notes due January 2024 issued by Russian Standard Finance SA

The issuer said on Sept. 23 that it sought to hold a meeting of creditors to approve restructuring the notes, and the meeting was approved under an order dated Sept. 30.

The key changes to the proposal are as follows, according to a company press release:

• The initial upfront cash payment will be increased to 18% from 10%;

• The principal amount of the new notes to be issued will be reduced to 82% of the current principal amount from 90% to reflect the increased upfront cash payment. The amortization schedule for principal repayments under the new notes in years five and six remains unaltered;

• The interest provisions on the new notes will be adjusted and will result in the interest being paid fully in cash after two years. The first three semiannual interest payments will comprise pay-in-kind notes, unless the bank becomes profitable over two quarters or pays any form of dividend, and the fourth will be paid as to 75% in PIK notes and 25% in cash.

The ad hoc noteholder group, which represented by Dechert LLP and holds about 32% of the outstanding principal of notes, agreed to vote in favor of the proposal at the creditors’ meeting.

Holders represent the following notes:

• $200 million 7.73% loan participation notes due December 2015;

• $200 million 7.561% loan participation notes due December 2016; and

• $78,081,000 9¼% loan participation notes due July 2017.

The information agent is D.F. King Ltd. (rsb@dfkingltd.com, +44 0 20 7920 9700 or sites.dfkingltd.com/rsb).

Russian Standard Finance is a finance vehicle for Russian Standard Bank, a Moscow-based lender.

© 2015 Prospect News.
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