OREANDA-NEWS. September 14, 2010. Novosibirsk Tin Plant (NOK) has defaulted on the premature redemption of series 3 bonds worth RUB 210.66 mn. NOK was to repay 210 237 bonds with a par value of RUB 1000 by September 6. The amount payable including accrued coupon yield totaled RUB 210.66 mn. September 13 was the last date when the company could pay off the bond.

As a reason behind the default, NOK names temporary financial difficulties that arouse because of smaller-than-planned raw-material shipments from mining companies in 2Q-3Q2010. On September 8, NOK defaulted on the same bond issue: the company failed to repay the 2nd coupon, worth RUB 17.8 mn. The bond issue of series, valued at RUB 1 bn (1 mn securities with a par value of RUB 1000) was placed in September 2009.

The bond is to mature on 26 August 2014. The floatation was arranged by Russian Funds investment group and Prospect Investment Company and guaranteed by NOK Finance. Proceeds were to be allotted to the replenishment of working capital and the restructure of the loan portfolio.

The bond has 10 coupons. The rate on the first and second coupons was set at 17%. In March 2010, NOK successfully paid out the first coupon of RUB 84.77 per share, which totaled RUB 50.37 mn. In August, NOK defined the rate on coupons 3-10 at 12.5% per year.