Novorossiysk port asking bond-holders to change covenants over Primorsk buy
MOSCOW. Nov 12 (Interfax) - Novorossiysk Commercial Sea Port Group (NCSP) is asking the holders of $300 million in five-year Eurobonds to approve changes to the covenants on those bonds in connection with its proposed purchase of Primorsk Trade Port (PTP) change in its own owner, NSCP said in a statement.
NSCP is buying 100% of PTP. Subsequently, Omirico Ltd, which currently owns PTP on behalf of oil pipeline operator Transneft and firms owned by the businessman Ziyavudin Magomedov, will buy 100% of Novoport Ltd., which owns 50.1% of NSCP and which is owned by Alexander Ponomarenko, Alexander Skorobogatko, and Arkady Rotenburg. NCSP has sent out requests for proposals to lend it $1.95 billion and the lender should be named on December 7.
The port is asking bond holders to waive their right to tender their notes for repurchase in the event the controlling shareholders changes and the debt/EBITDA ratio, currently 3.5, rises above the upper threshold. The ratio will rise to 4.6% once the loan has been raised.
Bondholders will receive $12.5 per note, par value $1,000 each, for their consent to change the covenants. They have until December 2 inclusive to vote electronically, with a meeting scheduled for December 6 in London. Morgan Stanley is the agent.
NSCP issued the 7% bonds in 2007.