OREANDA-NEWS. August 1, 2007. North-West Telecom’s Board of Directors took a decision on floatation of interest-bearing documentary bonds payable to bearer, series 05. Besides, the Board of Directors approved the Decision on the Issue and the Offering Circular.

Parameters of the fifth bonded loan of North-West TelecomJSC are:

The total volume of the issue will be RUR 3,000,000,000 (three billion).

The circulation period of the bonds will be 5 years.

The floatation price of one bond is equal to the face value and makes RUR 1,000 per bond. The interest rate for the first coupon will be determined as the sum of two summands:
MosPrime Rate for 3 months, established on the last working day before the date of issue floatation start;
premium to the MosPrime Rate for 3 months.

The rate for the 2nd – 12th coupons will be: MosPrime Rate plus Premium, however, no higher than the Limit Rate that will be set by the Company immediately before the date of floatation start.

The bonds will be floated through public subscription at SE MICEX. The starting date of floatation will be fixed by the Company after the state registration of the bonds issue depending on the market situation. 

A stage-by-stage retirement of the issue is provided for. The bonds will be retired consecutively, in parts, on the following dates:
• on the 1456th day from the starting date of floatation each bond will be retired partially to the amount of 25% of the face value;
• on the 1638th day from the starting date of floatation each bond will be retired partially to the amount of 25% of the face value;
• on the 1820th day from the starting date of floatation each bond will be retired partially to the amount of 50% of the face value.

Early retirement of the bonds is possible, if the Company wishes so, on any of the dates of coupon yield payment in the period from the 728th till the 1729th day from the starting date of bonds floatation. The amount of the premium to be paid in case of early retirement will be RUR 2.50 per bond.

Funds received from the floatation of the issue are expected to be allocated for refinancing the existing debt and for funding the Company's investment programme.

LLC NWT-Finance, a 100% subsidiary of North-West Telecom, acts as the surety in the fifth bonded loan.

AKB Svyaz-Bank JSC is the organizer of the 5th bonded loan of NWT and Bank St. Petersburg JSC is its financial counsellor.