LenSpetsSMU made early repayment of its Eurobonds

14.05.2013

On 13 May, 2013, CJSC SSMO LenSpetsSMU fulfilled its obligations of income payment for the 10th coupon, second installment (11% of the nominal value) on Eurobonds (CLN) and also voluntarily repaid in advance outstanding principal of Eurobonds placed in 2010 for the initial amount of USD 150 mln. (North Star SA acted as a issuer).

In total, on 13 May 2013 CJSC SSMO LenSpetsSMU paid off USD136 826 375. Of this, USD133 500 000 represents 89% of the nominal value and USD3 326 375 is the amount of interest paid on the total.

In accordance with the payment schedule, the first installment (11%) of the nominal on Eurobonds (CLN) (USD16 500 000) was already paid in February 2013.

In accordance with the loan contract provisions, CJSC SSMO LenSpetsSMU exercised its right to repay the outstanding Eurobonds on one of the dates of amortization payments in May 2013, complying with the advance notification procedure stipulated by the contract. The voluntary prepayment of Eurobonds was made on the first working day following the season of holidays in the Russian Federation (9-12 May, 2013).

The decision on voluntary prepayment was made as part of the optimization of the company’s credit portfolio, among other things, to minimize currency risks.

REFERENCE

On 15 November 2010, LenSpetsSMU placed Eurobonds (CLN) totaling USD 150mn. The CLNs had an amortization repayment scheme which dates the final payment as due on 09 November 2015 and also provides the opportunity for full or partial voluntary payment within the stated Repayment Date. The structure of the loan does not provide for any put options and the interest rate is fixed at 9.75%.

The legal adviser on the issue was Allen & Overy. The tax advisor was Pepeliaev Group. The trustee is TMF Group, with Deutsche Bank (London branch) acting as the paying agent.

CONTACT DETAILS:

Yana Yashchenko

Deputy CFO

+7 (812) 348-09-95

Yana.Yashchenko@etalongroup.com