Russia's Gazprombank buys back $42.55 million floaters, $39.14 million 6½% notes

By Susanna Moon

Chicago, Feb. 6 - OJSC Gazprombank said it purchased $42.55 million of its floating-rate loan participation notes due April 4, 2010 and $39.14 million of its 6½% loan participation notes due Sept. 23, 2015.

On Jan. 23, the company announced the start of a modified Dutch auction tender offer for up to $300 million total of its $700 million of floaters and its $1 billion of 6½% notes issued by GPB Eurobond Finance plc.

The offer ended at 10 a.m. ET on Jan. 29.

The company said it tendered the purchased notes to GPB Eurobond for redemption and cancellation.

For each $1,000 principal amount, the bank previously said it will pay $880 for the floaters and $650 for the 6½% notes. It will also pay accrued interest.

Gazprombank noted that at current market levels, the notes represent an attractive investment opportunity, adding that it planned to use part of its cash balance for the repurchase.

Tendered notes were to be accepted starting with the lowest offer price for each of the notes and up to the relevant actual purchase price.

Credit Suisse is the dealer manager (44 20 7883 6748). Citibank NA, London Branch is the tender agent (44 20 7508 3867).

Gazprombank is a Moscow-based joint-stock bank of the gas industry and a subsidiary of Russian energy giant Gazprom.

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