Novatek pays off Russian Eurobond holders, transfers funds for foreign holders to payment agent
MOSCOW. Feb 2 (Interfax) - Novatek has fulfilled its obligations to repay $1 billion in Novatek Finance DAC Eurobonds and pay interest on them, the company said in a statement.
According to the statement, Novatek, having previously fulfilled its obligations to the holders of Eurobonds with rights recorded in Russian depositories made the remaining coupon and principal payments to the issuer's account with the main paying agent (Citibank, N.A. London Branch) on January 18 for further transfer to international clearing systems. The latter should distribute payments among the holders of Eurobonds rights to which are not accounted for by Russian depositories. Thus, the company has duly fulfilled all its obligations in accordance with the issue documentation, the statement said.
Novatek placed $1 billion in Eurobonds in 2012; this was the last of the company's Eurobond issues remaining in circulation.
Last November, Novatek said that it had received consent from the holders of this Eurobond issue to make direct payments in rubles to investors whose rights to Eurobonds are accounted for in Russian depositories. The company noted that the changes in the terms of servicing the issue would make it possible to convey payments to Russian holders amid restrictions imposed by Euroclear on transactions to the National Settlement Depository (NSD). Because of these restrictions, Russian investors do not receive payments on Eurobonds, which are made according to the standard scheme through the payment agent.
In addition, at the same time, investors approved an increase in the grace period, during which non-payment of amounts due on the interest payment date or maturity date can be eliminated without the occurrence of a "default event", to 60 days.