Press releases | Archive 2011
RBC creditors approve changes to loan agreement
Moscow, October 27, 2011 — RBC OJSC (MICEX, RTS: RBCM) hereby announces that its creditors have approved changes to the terms of the loan agreement, signed as part of a debt restructuring process in April 2010.
As a result, the main restrictions on spending free cash flow on companys development program and asset acquisition have been lifted. In return, RBC will repay a portion of the debt under 5-year LPNs ahead of schedule. The company will pay $25m before the end of 2013 and $30m before the end of 2014 instead of May 2015. Therefore, RBCвЂ™s total debt burden (excluding interests) will decrease 26% by the end of 2014.
“We are delighted that the creditors of RBC have greenlighted its acquisition plans. This move will enable RBC to expand its Internet business, encourage revenue growth and fortify positions on the media market,” RBC CEO German Kaplun said.
For the decision to be passed, holders of over 50% of voting loan participation notes must vote for it. As of October 26, the date on which the voting expired, holders of 74% of loan participation notes voted in favor of amending the loan agreement.