Two UTair exchange bond issues at 3 bln rubles admitted to MICEX
KHANT-MANSIISK. March 12 (Interfax) - The MICEX has admitted two issues totaling 3 billion rubles of UTair Finance exchange bonds to trading without listing procedures (UTair Finance is an SPV of OJSC UTair Airlines (RTS-TMAT)), the company said.
Both issues, BO-01 and -02, are worth 1.5 billion rubles and each bond has 1,000-ruble face value. All the bonds mature in three years, and are slated for open-subscription placement at face value.
UTair Finance announced its intent to place the bonds in mid-January.
The coupon rate for the bonds is targeted at not over 16% pa, coupon payments to be made quarterly. The bonds will be backed by the airline.
The bonds will help the airline refinance its current short-term debts by replacing expensive short-term obligations with more attractive long-term borrowing.
UTair Finance already has a third bond series totaling 2 billion rubles in circulation.
UTair is a major Russian airline and one of the biggest helicopter operators worldwide. Companies affiliated with oil major Surgutneftegas reportedly control 75.64% of shares.