Moscow, 17 October 2018. PJSC SIBUR Holding, Russia’s largest integrated petrochemicals company, announces the successful completion of the tender offer announced on 9 October 2018 to purchase part of the USD 500 m Eurobond notes issued in October 2017 and maturing in 2023 with a coupon rate of 4.125% per annum.
As part of the offer, the Company accepted for purchase an aggregate principal amount of Eurobonds equal to USD 192,023,000 at a price of 97.4% of the par value. The buyback price was set at a premium to the notes’ market price as at the time of the tender offer announcement. Most of the tendered Eurobond notes came from Russian holders. The Company used excess liquidity coming from its steadily growing cash flow to finance the transaction.
Alexander Petrov, member of the Management Board and Managing Director for Economics and Finance, commented:
“We are well positioned to manage the Company’s debt and efficiently deploy available liquidity thanks to SIBUR’s stable operating cash flow generation and access to long-term financing, which secures financing of the ZapSibNeftekhim construction project. Hence, SIBUR decided to benefit from the favourable securities market environment to optimise its debt portfolio.”
Citigroup Global Markets Limited and J.P. Morgan Securities PLC acted as dealer managers under the transaction. The buyback is performed by Sibur Securities DAC (the “Issuer”, a 100% subsidiary of PJSC SIBUR Holding) on behalf of PJSC SIBUR Holding (the “Guarantor”).
Settlement is expected to take place on 19 October 2018.
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