10 Nov 2009 18:43

Acron to begin placing 3.5 bln rubles in bonds in late Nov; coupon

MOSCOW. Nov 10 (Interfax) - Nitrate and compound fertilizer producer Acron plans to place third series bonds totaling 3.5 billion rubles at auction in the final 10 days of November, a source in banking circles told Interfax.

The company began marketing the four-year bonds on Tuesday with a rate guidance of 13.75%-14.25% on the first coupon and an offer after 30 months.

Raiffeisenbank is the issue organizer.

The Federal Financial Markets Service (FFMS) registered Acron's second and third bond series, each totaling 3.5 billion rubles, in May.

The company placed the second series on September 24 with the first coupon at 14.05%. The issue has an offer after two years. The placement proceeds will be used to refinance debt.

Acron is seeking financing to implement raw materials projects. It was reported earlier that Sberbank is providing a loan of 9.5 billion rubles to a subsidiary, Northwest Phosphorus Company, to develop Oleni Ruchei apatite-nepheline deposit in Murmansk region. Acron might also raise a loan from VTB to develop the Talitsky potassium section in Perm territory

Acron acquired the license to the Talitsky potassium section in 2008 for 16.8 billion rubles, which it financed in part with a loan of 13.4 billion rubles from Sberbank.

The company's net debt amounted to almost 27 billion rubles as of June 30, of which 18 billion rubles comes due in 2009.

Acron's chief beneficiary is Vyacheslav Kantor, who is the head of the European Jewish Congress.