Wimm-Bill-Dann Foods Completes Bond Placement
OREANDA-NEWS. July 13, 2010. Wimm-Bill-Dann Foods OJSC [NYSE: WBD] announced the placement of two bond issues raising a total of 10 billion rubles (USD 319.9 million at the exchange rate on July 1, 2010).
Tony Maher, CEO of Wimm-Bill-Dann Foods commented: "I am very pleased with the results of the placement. During the book building we received 71 bids for a total of more than 17.2 billion rubles. Such strong demand for our bonds from foreign and domestic investors allowed us to increase the size of the placement from 5 to 10 billion rubles. The rate of the first coupon was set at 7.90% annually, a level significantly lower than our debt being retired and the rate seen during the marketing process. This is a striking endorsement by the investment community of our sound fundamentals, business model and strong growth prospects. The issuance of ruble bonds provides us with additional capital for future growth and further optimizes our debt portfolio."
VTB Capital and Raiffeisenbank acted as organizers for the bond issues.
The two bond issues, with a total nominal value of 10 billion rubles, have a maturity of three years, with coupons paid every six months. The technical placement of the bonds took place on July 1, 2010 on the Moscow Interbank Stock Exchange.
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