Ukraine’s PrivatBank pulls consent bid to amend 9 3/8% notes due 2015

By Susanna Moon

Chicago, Aug. 21 – PJSC Commercial Bank PrivatBank said it withdrew the consent solicitation for UK SPV Credit Finance plc’s $200 million 9 3/8% loan participation notes due 2015.

As previously announced, the issuer had sought to extend the maturity date of the notes to Dec. 1, 2015 from Sept. 23, 2015.

After failing to meet the two-thirds quorum Aug. 13, the meeting had been adjourned to 11 a.m. ET Aug. 27.

The consent solicitation began July 29.

The company also held a consent solicitation for the notes and its $150 million 5.799% loan participation notes due 2016 with noteholder meetings held July 13, as noted before.

Holders of the 9 3/8% notes gave the needed consents to amend those notes, but holders of the 5.799% notes did not. Because approval by holders of the 5.799% notes was a condition to amendment of the 9 3/8% notes, neither consent solicitation went through.

Under the failed consent solicitation, the company sought to extend the repayment date of the 9 3/8% notes to Jan. 23, 2018 from Sept. 23, 2015 and to add an amortized repayment provision and a corresponding amortized redemption provision, consisting of a repayment of 30% of the principal amount remaining on Sept. 23, 2017 and 70% of the principal amount remaining on Jan. 23, 2018. The company offered to increase the coupon to 10%.

The solicitation agent is Commerzbank AG (+49 69 136 59920 or liability.management@commerzbank.com). The tabulation agent is Lucid Issuer Services Ltd. (+44 (0) 20 7704 0880 or privatbank@lucid-is.com).

PrivatBank is a lender based in Dnipropetrovsk, Ukraine.

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