Polyus lifts cap on oversubscribed offer to buy notes from three series

By Rebecca Melvin

Concord, N.H., Oct. 7 – PJSC Polyus announced initial results of an increased offer to buy $650 million principal amount of notes from three series issued by Polyus Finance plc and guaranteed by JSC Polyus Krasnoyarsk, according to a notice.

The company initially expected to buy $500 million of the notes in its Sept. 28 offer.

The offers expired at 1 p.m. ET on Oct. 5.

Subject to pricing of an offering of new notes, the company expects to accept the following:

• All $457,793,000 of tendered 5¼% guaranteed notes due 2023 (ISINs: XS1533922933, US73180YAC84) for $1,058.75 per $1,000 note. Of the original $800 million issued, there is $787.8 million principal amount of the 2023 notes outstanding; and

• $147,530,000 of tendered 4.7% guaranteed notes due 2024 (ISINs: XS1713474325, US73181LAA98), at an expected scaling factor of 68.525%, for $1,077.50 per $1,000 note. Of the $500 million original principal amount, $470,134,000 principal amount of the 2024 notes is outstanding.

The issuer expects that none of the tendered 4.699% guaranteed notes due 2022 (ISINs: XS1405766384, US73180YAB02) will be accepted. The purchase price for the 2022 notes would have been $1,020 per $1,000 note. Of the $500 million originally issued, $482,806,000 principal amount of 2022 notes is outstanding.

Interest will also be paid to the settlement date.

The offeror, Polyus Capital plc, will announce the final results soon after the pricing of the issue of new unsecured and unsubordinated guaranteed debentures.

Priority in allocation of the new notes may be given to tendering noteholders.

The rationale for the offer is that the group seeks to extend its existing debt maturity profile and lower the group’s cost of funding.

Settlement is planned for Oct. 19.

Bank GPB International SA (+7 499 271 9154, +7 495 988 2353, Liability.management@gazprombank.ru), J.P. Morgan Securities plc (+44 20 7134 2468, em_europe_lm@jpmorgan.com), Renaissance Securities (Cyprus) Ltd. (+357 22 360 000, SyndicateDCM@rencap.com), Sberbank CIB (UK) Ltd. (liability_management@sberbank-cib.ru) and VTB Capital plc (+44 203 334 8029, liability.management@vtbcapital.com) are dealer managers for the offers.

Lucid Issuer Services Ltd. (polyus@lucid-is.com, https://deals.lucid-is.com/polyus) is the information and tender agent.

London-based Polyus is a gold producer with mines in Russia and Kazakhstan.

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