24 Mar 2010 18:58

Razgulay places two exchange bond issues for debt restructuring

MOSCOW. March 24 (Interfax) - OJSC Razgulay Group has entirely placed bond series BO-08 worth 2 billion rubles and BO-12 worth 1 billion rubles on Wednesday, the company said in a statement.

The bonds, which are worth 1,000 rubles each at face value, were placed at 91.62% set at by auction on the MICEX. The issues have a preterm offer for buyback slated for December 16, 2010. The bond yields to maturation came to 12.5%. Otkrytie Investment Bank organized the issues.

The group told Interfax that the bonds were placed as part of the second stage of restructuring of OOO Razgulay Finance's bond issues two through four. The group will redeem one third of the total bonds held by investors and convert the remaining bonds into a new issue of discount exchange bonds.

Razgulay Group at the end of March 2009 made an offer for restructuring the debt on bond issues two through four from Razgulay Finance. The company made an offer to investors to buy out 25% of the bonds on the condition that the bonds are not offered in the framework subsequent buyback options in 2009.

The first and third issues come to 2 billion rubles each while the fourth issue stands at 3 billion rubles.

Razgulay carried out an initial public offering in March 2006, from which it raised $144 million. In November 2007, it raised $66.5 million by placing 14 million supplementary shares in a secondary public offering. Existing shareholders used their preemptive rights to buy 87% of the shares.

Razgulay President Igor Potapenko is the company's main beneficiary.