Kazkommertsbank tenders for $300 million of three series of notes

By Susanna Moon

Chicago, May 18 – JSC Kazkommertsbank said it began a tender offer to purchase up to $300 million of three series of notes.

Pricing will be set under a modified Dutch auction with a maximum purchase price of par per $1,000 or €1,000 principal amount, with the minimum denomination as follows:

• $200 million 8 5/8% subordinated loan participation notes due July 27, 2016 originally issued by Kazkommerts Finance 2 BV, with a current interest rate of 6.765% and a minimum denomination of $150,000 and in integral multiples of $1,000 after that;

• $500 million ($355,629,000 outstanding) 7½% fixed-rate notes due Nov. 29, 2016 originally issued by Kazkommertsbank International BV with a minimum denomination of $100,000 and in integrals of $1,000 after that; and

• €750 million (€392.84 million outstanding) 6 7/8% senior notes due Feb. 13, 2017 with a minimum denomination of €50,000 and in integrals of €1,000 after that.

The purpose of the tender is to acquire some of the notes as part of the company’s liquidity management, aimed at optimizing its liquidity and cost of debt, according to a company announcement.

The purchase price for each notes issue will represent the lowest price that will allow the company to purchase an aggregate principal amount of the notes equal the issue acceptance amount and will either be the maximum purchase price or, for the July 2016 notes and the November 2016 notes, an increment of $0.50 per $1,000 principal amount below the maximum price or, for the 2017 notes, an increment of €0.50 per €1,000 principal amount below the maximum purchase price.

The tender offers will end at 11 a.m. ET on May 27, with settlement set for June 2.

J.P. Morgan Securities plc (+44 20 7134 2468 or em_europe_lm@jpmorgan.com) is the dealer manager. D.F. King Ltd. (+44 20 7920 9700, +852 3953 7230 or kkb@dfkingltd.com) is the information and tender agent.

Kazkommertsbank is an Almaty, Kazakhstan-based bank.

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