Credit Bank of Moscow drops tender cap to $50 million, extends offer

By Susanna Moon

Chicago, Aug. 10 – CBOM Finance plc said it decreased the maximum tender amount in the offer for its $600 million 7½% loan participation notes due 2027 and $700 million 8 7/8% perpetual callable loan participation notes to half the original cap.

And the issuer is now tendering for up to $50 million of the two series of notes until 5 p.m. ET on Aug. 24, extended from 5 p.m. ET on Aug. 10.

As announced July 16, CBOM was originally tendering for up to $100 million of the two note series by way of a modified Dutch auction at the request of Credit Bank of Moscow.

CBOM then said that holders had tendered $154,132,000 of the 7½% notes and $163,753,000 of the 8 7/8% perpetuals as of the early deadline at 5 p.m. ET on July 27.

Because the offers are oversubscribed, the tender cap was increased to $142,839,000 on July 30.

On Friday, the amendments to the offers were made “due to current volatility on the Russian financial markets,” according to a press release by CBOM.

The company made it clear on Friday that notes tendered before the early deadline would be given priority over those tendered afterward.

Settlement has been rescheduled for Aug. 29.

Also, pricing will be reset when the offer ends based on the bid premiums of all notes tendered before the early deadline, using a bid price range of $860 to $910 for each $1,000 principal amount.

Previously, the total purchase price per $1,000 principal amount was set as follows using the same bid price range for each series:

• $154,132,000 for the 7½% notes using a clearing premium of $18.75; and

• $163,753,000 for the 8 7/8% notes using a clearing premium of $8.75.

The total amount will include an early tender premium of $30.00 per $1,000 principal amount of notes tendered by the early deadline.

Tendered notes may now be withdrawn before 6 p.m. ET on Aug. 14.

The tender contains a financing condition that requires the company to issue ruble-subordinated notes.

As reported, CBOM priced $500 million of 5.55% five-year notes at par on Feb. 7.

The offers are being made in order to reduce the cost of capital and to optimize the capital structure of the bank and to provide some liquidity to noteholders, CBOM previously said.

The dealer managers are Societe Generale (855 881 2108, 212 278 6964, +44 20 7676 7680 or liability.management@sgcib.com) and Sova Capital Ltd. (+44 0 20 7826 8200 or cmo@sovacapital.com). The tender agent is Lucid Issuer Services Ltd. (+44 (0) 20 7704 0880, mkb@lucid-is.com or lucid-is.com/cbom).

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