Zarechnaya Coal Company to sell Series 01 bonds at about 11%
December 27, 2011
OOO Zarechnaya Coal Company is poised to sell Series 01 bonds on December 30, 2011. The issuer will offer 3 million bonds worth RUR1,000 each at par. The bonds mature in 7 years. The issue has state registration number 4-01-36405-R dated 08.12.2011. The proceeds will be used for boosting the company’s production capacity by funding the current investment programme, restructuring the liabilities portfolio and working capital injections. OAO Zarechnaya Mine is the guarantor on the issue. Sviaz-bank is the arranger on the deal.
“We are quite realistic about the market, the situation there is tough and our company is not the first-tier issuer, that is why we are planning to have a club deal and do not expect high demand”, said deputy head of the board for corporate development Dmitry Bogdanov. The syndicate has not been formed yet, the issuer is in talks with investors and arrangers. Coupon guidance is around 11%.
The issue has put options in 3 and 5 years. The coupon to put will be set at auction.
The company tries to keep to 3х net debt/EBITDA ratio, this figure will be a bit higher by the year-end. The issuer also has Series 02 bonds worth RUR2bn registered, it will be priced closer to summer.
Issue — UK Zarechnaya, 01
Country of riskRussia
Redemption (put/call option)
М/S&P/F— / — / —
Company — UK Zarechnaya