OREANDA-NEWS. December 7, 2009. The Bank of Moscow has repackaged Sitronics’ debt into LPNs. The Bank of Moscow has repackaged telecommunications operator Sitronics’ USD 230 mn credit into loan participation notes (LPNs) with a coupon equal to the 3-month LIBOR plus 8%. This week the company said it reached an agreement with the Bank of Moscow on refinancing VEB’s USD 230 mn credit facility.

The terms of the transaction implied the issue by Golden Gates, a SPV, of credit linked notes in favor of Sitronics for 24 months with a possible further sale of the securities to investors. Collateral for the issue is AFK Sistema’s warranty and the right of direct debiting from accounts held by Sitronics and AFK Sistema with a number of banks.