Kazakhstan Temir Zholy begins tendering for 6.95% notes due 2042

By Rebecca Melvin

New York, May 26 – JSC NC Kazakhstan Temir Zholy announced that it is tendering for its 6.95% notes due 2042 until noon ET on June 2.

The tender offer is being made with respect to $1.1 billion principal amount of notes, with the issuer expecting to tender for up to $350 million of the Regulation S global notes (ISIN: XS07996586370).

The purchase price per $1,000 principal amount of notes is $1,280 plus accrued interest, according to the announcement on Tuesday.

The issuer’s current intention is to repurchase and cancel the notes, but it reserves the right to hold the notes.

It is proposing to finance the tender with the proceeds of a new term loan. It is planning to accept for purchase up to $350 million of the notes, but it may accept less or more than that amount. It will accept notes over the maximum acceptance amount by scaling by a factor equal to the maximum acceptance amount divided by the principal amount that are validly tendered, subject to adjustment resulting from the rounding of tenders and the intention of the issuer.

Settlement of the tender offer is expected to occur on June 10.

The dealer managers are MUFG (+44 20 7577 4145 or liability.managmenet@mufgsecurities.com) and Sova Capital Ltd. (+44 20 7826 8200 or cmo@sovacapital.com).

The tender agent is Lucid Issuer Services Ltd. (+44 20 7704 0880 or ktz@lucid-is.com; https://portal.lucid-is.com).

The company is a railway transportation company owned by the Republic of Kazakhstan.

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