Sistema announces offer to purchase $350 mln in Eurobonds maturing in 2011
MOSCOW. Dec 3 (Interfax) - Sistema Capital S.A., a AFK Sistema SPV, has made an offer to redeem $350 million in Eurobonds that mature in 2011, Sistema said in a statement.
The offer is valid until January 7, 2010.
Bondholders who present their bonds for purchase before December 17 will receive full compensation: $1,055 per bonds, including a $30 premium. After December 17, bondholders will not receive the premium.
Credit Suisse is the manager for the offer and Deutsche Bank is the tender agent.
Sistema Capital placed the bonds in January 2004 at 8.875% annually. It is the company's only Eurobond issue in circulation.
Sistema is currently placing 19 billion rubles in bonds on the MICEX exchange with a 12.5% coupon rate. The proceeds will be used to optimize the debt portfolio by increasing the ruble component in borrowing. Sistema placed 20 billion rubles in five-year bonds in August.