Russia’s Fesco ends Q1 with $897 million debt, wraps Q2 tender offer

By Lisa Kerner

Charlotte, N.C., May 29 – Russia’s Far Eastern Shipping Co. plc (Fesco) ended its first quarter on March 31 with cash of $225 million and net debt of about $897 million.

On March 31, the company launched a cash tender offer for up to $85 million of its senior notes, according to the company’s first-quarter earnings presentation.

The offer was amended to up to $130 million on April 20.

Fesco’s offer was for $550 million of the company’s 8% senior secured notes due 2018 and $325 million of its 8¾% senior secured notes due 2020, which were issued by Far East Capital Ltd. SA.

The tender offer was completed on May 11, according to a company news release. The total amount of the 2018 notes and 2020 notes validly tendered and accepted for purchase was $128.9 million at 51% of par value and $91.2 million at 50% of par value, respectively.

In addition, Fesco began a public tender offer for up to RUB 4 billion in Ruble bonds series BO-02 at a fixed price of 80%. On April 17, the principal amount of the RUB bond validly tendered and accepted for purchase was RUB 2.9 billion at a fixed price of 80% of par value, the company said.

The bond backs were funded by Fesco using a combination of its own and borrowed funds, including the placement of Ruble bonds series BO-01 in the amount of RUB 5 billion, and a $44 million repo loan from an international bank.

Fesco is based in Moscow.

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