UAC Will Place Bonds Totaling 46,28 bln Rubles
OREANDA-NEWS. June 16, 2010. Joint Stock Company “United Aircraft Corporation” [RTS, MICEX: UNAC] announces the approval by the Board of Directors of the placement of documentary non-convertible interest-bearing 01 series bonds, reported the press-centre of UAC.
Proceeds from the bonds placement will be used to refinance the loans of UAC and its subsidiaries.
In accordance with the decision, UAC will place its rouble-denominated bonds for the amount of RUR 46.28 billion on the following terms:
method of placement - public subscription;
volume - 46,280,000 securities;
par value – RUR 1,000;
maturity - 3,276th day from the date of the placement (tenor - 9 years).
It is expected that UAC will place its bonds in the 4th quarter of 2010 after the Russian Federation has provided the state guarantee pursuant to the Federal Budget Law. UAC further expects the Russian Government to grant a subsidy for the coupon payments on the bonds.
As a result of the bonds placement and the subsequent debt refinancing, total savings for UAC will amount to about RUR 4.6 billion a year. Thus the long-term debt will make more than 75% of UAC`s consolidated credit portfolio, and the effective rate on the credit portfolio will decrease to 5.5 % per annum.
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