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Press releases | Archive 2013

RBC agrees with creditors on amending LPN terms

Moscow, December 27, 2013 – RBC OJSC (Moscow Exchange: RBCM) hereby announces that it has reached an agreement with creditors on amending the terms of the loan agreement signed as part of a debt restructuring deal in April 2010.

As a result, the repayment dates of Loan Participation Notes (LPNs) have been changed. In particular, the maturity date of Class A LPNs (worth a total of $123.6m at par value) has been postponed from May 2015 until November 2020, while the maturity date of Class B LPNs (with a total par value of $78.1m) has been extended from May 2018 until November 2022. Coupon rates of Class A and B notes have remained unchanged. The revised terms envision a deferment of interest payment accrued on Class A LPNs for the period from November 2013 until November 2014 and further repayment in equal installments in May and November 2015. Interest accrued on Class A LPNs after November 2014 are payable every six months annually until full repayment (the first payment will be made in May 2015). Interest on Class B LPNs will be accrued but won’t be capitalized, while the payment of interest will be postponed until the repayment of the principal amount in 2022. The company is now released from the obligation to prepay part of its debt under Class A LPNs in 2013 and 2014.

Additionally, main restrictions on the acquisition and disposal of assets stipulated in the loan agreement have been removed, which enables RBC to take advantage of its strategic and financial opportunities and creates potential for business growth.

“I am happy that we are finally ready to release this piece of news, because everyone has been waiting for a comprehensive resolution of the issue with the creditors. This is a very important step forward for RBC and, in particular, it will enable us to direct all our financial resources towards business development next year,” RBC CEO Derk Sauer said.

Creditors that account for 64% of the total par value of the voting notes have approved these resolutions, with just over 50% of the total votes required for approval. The respective decisions are expected to be executed before the end of 2013.

The terms of RBC OJSC’s warrants and ruble-denominated bonds remained unchanged.

Renaissance Capital investment bank acted as an advisor on the transaction.


Press and investor contacts:
Egor Timofeev
Tel: +7 (495) 363-1111
Email: pr@rbc.ru
Web: www.rbcholding.com