OREANDA-NEWS. April 06, 2010. UTair-Finance has successfully placed Series BO-01 and BO-02 Commercial Paper issues totaling RUB 3 billion. The issues were placed at MICEX Stock Exchange in an open bookbuilding.

TransCreditBank, Sberbank and BK Region acted as arrangers of the issues. UTair Aviation is the guarantor of the issues.

The orderbook was 1.5 times oversubscribed, with orders from 29 accounts, including state-owned banks, regional commercial banks, as well as investment, insurance and asset management companies.

The coupon rate was set at 12.5 percent per annum, at the tighter end of the initially announced 12.5-13 percent range, payable quarterly. This equates to YTM of 13.1 percent per annum.

Both issues have 3-year tenors. Rates of the 2nd and following coupons are set equal to the 1st coupon rate.

Once listed, the papers are to be included in the MICEX Quotation List A1.

Proceeds from the placement will be used to refinance the Company’s existing debt.