Russia's VimpelCom says 2.5 billion rubles of bonds put back

By Reshmi Basu

New York, May 21 - VimpelCom said holders of more than 2.5 billion rubles of its 3 billion rubles bond due May 16, 2006 exercised the put option.

Holders were allowed to exercise a put option from May 9 to May 18 at par, which resulted in the redemption of 83.7% of the three-year bonds.

The Moscow-based telecommunications company issued the bond on May 20, 2003 and the interest rate adjusts after one year.

The redeemed bonds will be available for resale in the Russian secondary market in accordance with Russian law.

Lead manager Raiffeisenbank Austria provided bridge financing for the repurchase.

The annual interest rate for the first two payments was 8.8%. On May 7, VimpelCom reset the third interest payment at 9.9%.

VimpelCom's subsidiary VimpelCom-Region guarantees all payments on the bonds.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.