LenSpetsSMU has fulfilled its redemption obligation for the first installment and payment of CLN interests in full and on time


On Wednesday, 20 May, CJSC SSMO “LenSpetsSMU” fulfilled the redemption obligation for the first installment (16.67% of the nominal) and payment of interests on credit linked notes (CLN) in full and on time.

For the information of note holders, since 21 May is a bank holiday (in European countries the Ascension Day is celebrated) the issuer (GOLDEN RING FINANCE S.A.) will transfer funds to the note holders on 22 May 2009.

Please, be aware, that on 26 April 2007 Etalon-LenSpetsSMU placed credit linked notes for the amount of $100M. The maturity date according to the original terms and conditions – 26 April 2012, the put option date – 26 April 2009. Rate: 9.75%. The arranger of the issue was ROSBANK.

On 4 March 2009 LenSpetsSMU reached an agreement with the note holders on changing the parameters of the notes, in particular, on the cancellation of the put option in April 2009, prolongation of obligations till August 2010 and mitigation of the procedure of observance of financial covenants. The borrower also received the right to early redemption of the credit linked notes, which made this financial tool more flexible. For its part, LenSpetsSMU agreed to increase the rate from 9.75% to 12% per annum and to fix the redemption procedure in six equal quarterly installments starting from 20 May 2009.

The change of the parameters of credit linked notes did not require from LenSpetsSMU the granting of collateral and/or selling of shares or warrants. The note holders voted unanimously.

The arranger of the restructuring was ING Bank, the joint arranger was ROSBANK. The legal adviser of the transaction wasHerbert Smith.


Mikhail Dukhovny, Director of Corporate Communications Department
Telephone: +7 (812) 348-21-25, e-mail: dukhovny_m@lenspecsmu.ru

Victor Vasenev, Deputy CFO
Telephone: +7 (812) 348-09-95, e-mail: vasenev_v@lenspecsmu.ru