Alliance Oil tenders for $100 million of 7% notes, seeks extension

By Sarah Lizee

Olympia, Wash., April 3 – Russia’s Alliance Oil Co. Ltd. launched a cash tender offer for up to $100 million of its $500 million 7% guaranteed notes due 2020 (ISINs: XS0925043100, US018760AB41), according to an announcement.

The company also launched a consent solicitation for holders to approve by extraordinary resolution some modifications to the terms and conditions of the notes, including extending the maturity date.

The issuer is offering a tender consideration of $1,000 per $1,000 of notes plus the applicable consent fee. Holders will also receive accrued interest.

Noteholders who tender their notes will be deemed to have delivered consents in favor of the extraordinary resolution. A noteholder may participate either in the tender offer (by which it will be deemed to have delivered its consent) or the consent solicitation, but not in both at the same time.

Noteholders who tender their notes or deliver their consents in favor of the extraordinary resolution at or prior to the early consent deadline, 5 p.m. ET on April 17, will be eligible to receive $12.50 per $1,000 of notes.

Noteholders who tender their notes or deliver their consents in favor of the extraordinary resolution after the early consent deadline but at or prior to the final consent deadline, midnight ET on April 23, will be eligible to receive $7.50 per $1,000 of notes.

The noteholders who do not participate in the tender offer or consent bid, but choose to tender their notes after the final consent deadline but at or prior to the expiration deadline, midnight ET on May 1, will be eligible to receive the tender consideration only, and their tender instructions will be deemed to be tender instructions only.

The tender offer is subject to the extraordinary resolution being passed and obtaining necessary financing.

A meeting is scheduled for 5 a.m. ET on April 27. However, in light of the ongoing developments in relation to coronavirus, the method and date of the meeting may be adjusted.

Settlement is expected for May 5.

Alliance Oil said the current economic conditions led it to consider proactively managing its liquidity position by extending the maturity profile of its debt. The issuer is in negotiations with its creditors regarding the maturity extensions of its financial obligations and is requesting noteholders to consider and consent to the proposal to extend the maturity of the notes.

The extension will enable the issuer to preserve liquidity and take necessary measures to address negative impact of current unfavorable market conditions and maintain its operations, Alliance said.

Credit Bank of Moscow PJSC is acting as structuring adviser and Lucid Issuer Services Ltd. (+44 20 7704 0880) is acting as the tender, tabulation and information agent.

Alliance said it is also in discussions with lenders to request a grace period on debt repayment for the financial year 2020 in relation to its other debt as well as to extend the maturity of short-term loans. Alliance said it expects to receive their consents in the near term.

Alliance Oil is a Moscow-based independent oil and gas company with vertically integrated operations in Russia and Kazakhstan.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.