OREANDA-NEWS. July 09, 2010. WBD has placed bonds for a total of RUB10bn, with a three year maturity date. The first coupon rate is set at 7.9%, suggesting a 10-15bp discount to the WBD yield curve, reported the press-centre of OTKRITIE Financial Corporation.

View: The news is positive for the debt rebalancing of WBD. As of 31 March 2010, the company’s debt amounted to USD485m, of which USD200m is short-term debt. Another bond issue, currently outstanding, for RUB3bn has a put option in September 2010 and carries a 15% coupon rate. News of the bond placement should have no substantial impact on WBD’s share price.

Valuation and Action: The stock trades on a 2010 EV/EBITDA of 9.6x, which is an 11% discount to EM peers. We reiterate our HOLD rating for the stock.