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Prospect News home > News index > List of issuers O > Headlines for O1 Properties Ltd. > News item
Published on 8/21/2018 in the Prospect News Distressed Debt Daily, Prospect News Emerging Markets Daily and Prospect News Liability Management Daily.

Russia’s O1 aims to avert put option under 8¼% notes, may lack funds

By Susanna Moon

Chicago, Aug. 21 – O1 Properties Finance plc is soliciting consents to avoid making a change-of-control offer for its $350 million of 8¼% notes due 2021 guaranteed by O1 Properties Ltd.

Riverstretch Trading & Investments Ltd., a company based in Cyprus, acquired 70.038% of class A and 58.391% of class B voting stock of the parent guarantor on July 4, which constitutes a change of control under the note terms, according to two separate announcements.

If a change of control occurs, the issuer is required to offer to repurchase the notes at 101, but it may lack the funds to do so and is asking holders for approval to waive or modify that obligation.

“The new shareholder is currently conducting operational and financial due diligence on the parent guarantor and its subsidiaries, including the issuer, and the relevant exercise is ongoing,” the company said.

The issuer is expected to continue paying interest on the notes, the release added.

The early consent fee will be $30 per $1,000 principal amount of notes if votes are cast in favor of the proposal by 11 a.m. ET on Aug. 30. The late consent fee will be $15 per $1,000 principal amount.

The consent solicitation will run until 11 a.m. ET on Sept. 10.

A noteholders meeting will be held on Sept. 12.

The solicitation agents are JSC Sberbank CIB (+7 495 787 2363 or liability_management@sberbank-cib.ru) and Sberbank CIB (UK) Ltd. (+44 20 7936 0412 or daria_valkova@sberbank-cib.ru). The information and tabulation agent is Lucid Issuer Services Ltd. (+44 20 7704 0880 or O1properties@lucid-is.com).

The issuer is a subsidiary of investment company O1 Properties Ltd., which is based in Moscow.


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