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Kazkommertsbank fails to meet consent threshold for 5½% notes due 2022
By Susanna Moon
Chicago, May 29 – Kazakhstan’s JSC Kazkommertsbank said it failed to meet the 75% threshold required for consents to amend its $750 million of 5½% notes due 2022.
At the meeting held Thursday, holders represented about 89% of the outstanding notes and, of those cast, about 72.7% voted in favor of the proposal, according to a notice from the bank.
As announced on May 6, Kazkommertsbank sought consents to allow it to amend the $1,592,000,000 4% loan due 2024 made by Samruk-Kazyna to JSC BTA Bank.
To make the changes, Kazkommertsbank needed the approval of 75% of the votes cast, and at least a majority of the notes needed to be represented at the meeting.
The early deadline was extended to coincide with the expiration of the offer at 10 a.m. ET on May 26. Previously consents had to be delivered by 10 a.m. ET on May 19 to qualify for the additional early fee.
The changes would have substituted Kazkommertsbank as borrower instead of BTA.
Noteholders were asked to acknowledge that the substitution will not result in any violation of the terms of the notes.
Holders who delivered consents by the early solicitation deadline of 10 a.m. ET on May 19 – which was extended – would have received a fee of $2.50 per $1,000 principal amount.
Consents submitted after the early deadline would have received a fee of $1.00 per $1,000 principal amount.
Both fees were subject to the changes being approved. Noteholders who attended and voted at the meeting will not receive either fee.
J.P. Morgan Securities plc (+44 20 7134 2468 or em_europe_lm@jpmorgan.com) is solicitation agent. D.F. King Ltd. (+44 20 7920 9700, kkb@dfkingltd.com or http://sites.dfkingltd.com/kkb) is tabulation agent and information agent.
Kazkommertsbank is based in Almaty, Kazakhstan.
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