Russian Railways unit RZD wraps tender for 5.739% notes, 2.177% notes

By Susanna Moon

Chicago, Sept. 30 – RZD Capital plc said investors had tendered $581,047,000 of its $1.5 billion 5.739% loan participation notes due 2017 and CHF 69.75 million of its CHF 525 million 2.177% loan participation notes due 2018.

The tender offer ended at 11 a.m. ET on Sept. 28.

RZD expects to accept all of the tendered notes for purchase if it meets the financing condition, according to a company notice.

After settlement on Oct. 11, the outstanding amount will be $918,953,000 for the 5.739% notes and CHF 455.25 million for the 2.177% notes.

As announced Sept. 19, the notes were issued to finance loans to Russian Railways JSC.

The purchase price is $1,021 per $1,000 principal amount of 5.739% notes and CHF 5,075 per CHF 5,000 principal amount of 2.177% notes.

The company will also pay accrued interest.

All notes tendered in the offer will be canceled.

The company previously said that it planned to fund the tender with proceeds of a new issue of loan participation notes and that when allocating the new notes, plans to “look favorably” on investors that have tendered their notes.

The dealer managers are J.P. Morgan Securities plc (44 20 20 7134 2468 or em_europe_lm@jpmorgan.com) and VTB Capital plc (44 203 334 8029 or liability.management@vtbcapital.com). The tender agent is Lucid Issuer Services Ltd. (44 20 7704 0880 or rzd@lucid-is.com).

Russian Railways is a state-owned railway company based in Moscow.

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