By Wendy Van Sickle
Columbus, Ohio, June 2 – PJSC MegaFon said it priced RUB 10 billion of 10-year series BO-02 bonds with a coupon fixed at 9.9% for first five years.
The coupon will be the two-year OFZ yield plus 100 basis points in years six and seven and the three-year OFZ yield plus 100 bps for the final three years.
The coupon was set via a bookbuilding process.
The bonds are callable on the fifth and seventh anniversaries of placement.
Placement on the Moscow Stock Exchange is expected on June 10.
This is the company’s second placement under its new bond program during 2016.
“We believe that the current macroeconomic environment remains favorable for attracting funding. The transaction’s terms allowed MegaFon to raise funding for a record term at very flexible conditions and attractive rates,” Gevork Vermishyan, chief financial officer of MegaFon, said in a news release.
Proceeds will be used for general corporate purposes, including refinancing the company’s liabilities.
Gazprombank, is the lead arranger.
The telecommunications operator is based in Moscow.
| Issuer: | PJSC MegaFon
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| Issue: | Bonds
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| Amount: | RUB 10 billion
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| Maturity: | 10 years
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| Coupon: | 9.9% for first five years, two-year OFZ yield plus 100 basis points for the next two years, three-year OFZ yield plus 100 bps for final three years; payable quarterly
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| Call option: | On fifth and seventh anniversaries of placement
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| Lead arrangers: | Gazprombank
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| Settlement: | June 2
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