KazTransGas holders vote to amend 4 3/8% bonds due 2027

By Marisa Wong

Los Angeles, Aug. 5 – Kazakhstan’s KazTransGas JSC said holders of its 4 3/8% bonds due 2027 approved an amendment to the bonds at a bondholders’ meeting held on Aug. 1.

As announced on July 9, KazTransGas launched a consent solicitation for its $750 million of 4 3/8% bonds due 2027 guaranteed by Intergas Central Asia JSC.

The issuer asked 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 some 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 of 94.46% of the principal amount of the outstanding bonds were present or represented at the meeting. A total of 97.28% of the votes cast were in favor of the extraordinary resolution to amend the bonds, according to an announcement on Monday.

Holders who submitted consent instructions by 11 a.m. ET on July 23 were offered a consent fee of $4 per $1,000 principal amount of notes, as previously noted.

Citigroup Global Markets Ltd. (+44 20 7986 8969 or liabilitymanagement.europe@citi.com), ING Bank NV, (+44 20 7767 6784 or liability.management@ing.com) or VTB Capital plc (+44 20 3334 8029 or liability.management@vtbcapital.com) are the solicitation agents.

Lucid Issuer Services Ltd. (+44 20 7704 0880 or ktg@lucid-is.com) is the tabulation agent.

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

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