Sovcomflot readying USD bond offering to refinance debt
MOSCOW. May 31 (Interfax) - Russian state-owned shipping company Sovcomflot is holding meetings with investors in Europe and the United States from June 2 to June 8, which could result in a dollar-denominated Eurobond placement, a banking sector source told Interfax.
The road show will take in Moscow, London, New York, Boston and Zurich.
Citi and J.P.Morgan had been appointed joint global coordinators and ING, Sberbank CIB and VTB Capital lead managers.
The proceeds will be used to finance the repurchase of bonds maturing in 2017 - a total of $800 million is outstanding - and to refinance other debt.
Sovcomflot announced a tender for the repurchase of 2017 bonds on June 1. It is prepared to buy the whole issue at $1,041.25 per bond, face value $1,000, Sovcomflot said in a statement filed with the London Stock Exchange.
The $800 million in 5.375%-notes were placed in October 2010. Sovcomflot has not raised funds with Eurobonds since then.
Fitch Ratings said in a press release that it had assigned its "BB(exp)" rating to the bonds, which will be issued by the special purpose vehicle SCF Capital Limited. Sovcomflot itself is rated "BB", stable outlook.