Kazakhstan’s KazTransGas asks holders of 4 3/8% notes to approve sale

By Wendy Van Sickle

Columbus, Ohio, July 9 – KazTransGas JSC launched a consent solicitation for its $750 million of 4 3/8% bonds due 2027, according to a London Stock Exchange notice.

The notes are guaranteed by Intergas Central Asia JSC.

The issuer is asking holders to approve the sale of up to 100% of the shares or assets of its KazTransGas Aimak JSC subsidiary and/or its KazTransGas Onimderi LLP subsidiary.

The issuer plans to use the proceeds of the sale to repay certain debt of the issuer and/or the guarantor that ranks pari passu or senior to the notes. The issuer expects the sale to reduce its consolidated debt levels by about $232 million.

Holders who submit consent instructions by 11 a.m. ET on July 23 are being offered a consent fee of $4 per $1,000 principal amount of notes.

A meeting of noteholders will be held at 4 a.m. ET on Aug. 1. Results of the consent solicitation will be announced after the meeting.

Citigroup Global Markets Ltd. (44 207 986 8969 or liabilitymanagement.europe@citi.com), ING Bank NV, (44 207 767-6784 or liability.management@ing.com) or VTB Capital plc (44 203 334-8029 or liability.management@vtbcapital.com) are the solicitation agents.

Lucid Issuer Services Ltd. (44 207 704 0880 or ktg@lucid-is.com) is the tabulation agent.

The gas supply company, a subsidiary of state-owned KazMunayGas JSC, is based in Astana, Kazakhstan.

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