OREANDA-NEWS. On June 07, 2007 Southern Telecommunications Company (“UTK”) (RTS: KUBN, KUBNP; MICEX: UTEL, UTELP; ADR OTC: STJSY, KUE FRA), the principal fixed-line telecommunications provider for Russia’s Southern Federal District, reported that on June 6, 2007 placement of the Company’s 05-series non-convertible interest-bearing  documentary pay-to-bearer bonds subject to mandatory centralized custody, state registration number 4-09-00062-A, took place in MICEX Stock section, reported the press-centre of UTK.

During the placement auction, the interest rate for the first coupon of 05 series bond issue was determined at 7,55% per annum. The bulk of the bids were in the 7,3% -7,8% range.

Volume of submitted bids amounted to 3,45 billion rubles exceeding considerably the volume of placement. As a result, 48 bids for a total of 2,0 billion rubles were met during the auction. The total yield for the 1st quarterly coupon to be paid out on UTK’s 05 series bonds equals 75,300 thousand rubles (seventy five million and three hundred thousand rubles) with RUR 37,65 (thirty seven rubles sixty five kopecks) yield on each bond.

Identification characteristics of series 05 bond issue of "UTK" PJSC:
The issue is for a total of Rub 2 bln.
Period to maturity is 5 years.
The face value of 1 bond is Rub 1,000.

The bond issue carries 10 coupon periods, each lasting 182 days. The interest rate for the 1st coupon is set on the results of the auction held on the day of placement which is June 6, 2007. The 2nd, 3rd, 4th, 5th and 6th coupon yields equal the interest rate of the 1st coupon. The 7th through 10th coupons shall be fixed by the Issuer not later than 10 (ten) calendar days prior to the expiry date of the preceding coupon period.

The possibility of Bonds acquisition by the Issuer under the agreement with the Bonds owners or on their demand is provided for, such Bonds being available for further circulation until the repayment deadline.

The date of the bonds’ acquisition by the Issuer is determined as the third working day of the seventh coupon period or June 4, 2010. Call option period is from May, 29 till June 2, 2010 inclusive. Number of bonds to be bought out is up to 2,000,000 units inclusive. The acquisition price is 100 % of the face-value. The price does not include accumulated coupon income under bonds as of the date of bonds repurchase which is to be paid by the Issuer to the Bond owner in addition to the acquisition price at the moment of the transaction.

Financial consultant of the 05 series issue is CJSC Russian Industrial Bank. OJSC AKB Svyaz-Bank acts as the arranger and payment agent of the issue. LLC UTK-Finance is the underwriter of the bond issue.