Sovcomflot to begin secondary placement of local bonds on April 11 to replace remainder of 2028 Eurobonds
MOSCOW. April 10 (Interfax) - Sovcomflot will begin issuing additional local bonds on April 11 to replace its remaining outstanding dollar Eurobonds maturing in April 2028, the company said in a statement.
The company may place up to 112,187 bonds with par value of $1,000 each. The maximum amount of the additional offering is $112,187 million, which corresponds to the balance of Sovcomflot's outstanding Eurobonds maturing in 2028, after the company held the first round of substitution of this issue last year. The coupon rate on the Eurobonds is 3.85% and the next payment is due on April 26.
The terms of the "replacement bonds" are similar to those of Eurobond 2028 in terms of the size and timing of the coupon payment, maturity and face value.
Collection of offers will be held from 11:00 MSK on April 11 to 18:00 on April 19. The end date of the placement is April 25.
Payment for the bonds at their placement will be made by 2028 Eurobonds, as well as the transfer (assignment) of all property and other rights under such Eurobonds. Payments under replacement bonds will be made in rubles at the exchange rate of the Central Bank of Russia on the date of fulfilment of obligations.
Sovcomflot placed local bonds for $317.8 million in October 2022 to replace Eurobonds maturing in 2028. The company was able to replace almost three quarters of the outstanding 2028 Eurobonds.
Sovcomflot also has outstanding Eurobonds maturing in June 2023, with about 76% of this issue replaced with local bonds last year. Earlier, the company announced that it intends to redeem replacement 2023 bonds ahead of schedule in April.