X5 Retail Group N.V. announces about 9 billion rouble bonds issue and restructuring of corporate borrowings
18 Jun 2007
Amsterdam, 18 June 2007 – X5 Retail Group N.V. (LSE ticker: “FIVE”), Russia's largest retailer in terms of sales, decided to issue its first tranche of rouble bonds in the first half of July 2007.
The rouble bonds issue with a total nominal value of 9 billion roubles has a 7 year maturity and will offer semi-annual coupon payments. The issue of rouble bonds is accompanied by issue of 3-year period offer for earlier redemption of the rouble bonds at 100% of the nominal value.
The organizers of the rouble bonds issue are OAO “Bank VTB” and ZAO “Raiffeisenbank Austria”.
Simultaneously, as part of the integration of treasury operations at Pyaterochka and Perekrestok chains, the management of X5 Retail Group N.V. has decided to optimize the existing borrowings of the companies comprising X5 Retail Group N.V. As a result, the proceeds from rouble bonds issue will be used for:
• Repurchase and early redemption of the first and second tranches of rouble bonds of OOO “Pyaterochka Finance” (reg. #4-01-36081-R, #4-02-36081-R) with a total nominal value of 4.5 billion roubles with subsequent liquidation of the legal entity OOO “Pyaterochka Finance”;
• Early redemption of the first tranche of ZAO “Trade House “Perekrestok” rouble bonds (reg. #4-01-09698-H) with a total nominal value of 1.5 billion roubles; and also
• Expansion of X5 Retail Group N.V. retail chain.
The repurchase of the first and second tranches of rouble bonds of OOO “Pyaterochka Finance” will take place on 9th July 2007 in accordance with the conditions specified in the public irrevocable offer, which will be published in the near future. The agent for the repurchase will be ZAO “Raiffeisenbank Austria”. The repurchase price for the first tranche of OOO “Pyaterochka Finance” rouble bonds will be 109.30% of nominal value plus accumulated coupon income, for the second tranche of OOO “Pyaterochka Finance” rouble bonds – 104.55% of nominal value plus accumulated coupon income.
Early redemption of ZAO “Trade House “Perekrestok” rouble bonds will be done at 12th July 2007 through repurchasing under offer and price will be 100% of nominal value.
Dmitry Milshtein, X5 Retail Group Treasurer: “During last twelve months X5 Retail Group N.V. has focused on integrating the business processes of combined Company. As part of this, the Company has restructured its borrowings portfolio and has refinanced all borrowings of the Pyaterochka chain. The final step in the restructuring will be the repurchase and early redemption of Pyaterochka and Perekrestok rouble bonds. Simultaneously, new rouble bonds of X5 Retail Group, with higher quality than previous, will be offered to the market.”
Vitaliy Podolskiy, X5 Retail Group CFO: “As part of its financial strategy for 2007, X5 Retail Group issues the first tranche of new rouble bonds that will enable us to simplify our borrowings structure, decrease costs of debt servicing, increase brand loyalty among professional investors, as well as provide the Company with additional resources to fund further growth. At the same time, to further strengthen its reputation in long-term relationships with investors, X5 is offering to repurchase all its old rouble bonds on attractive terms.”
Forward looking statements:
This announcement includes statements that are, or may be deemed to be, “forward-looking statements”. These forward-looking statements can be identified by the fact that they do not only relate to historical or current events. Forward-looking statements often use words such as” anticipate”, “target”, “expect”, “estimate”, “intend”, “expected”, “plan”, “goal” believe”, or other words of similar meaning.
By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances, a number of which are beyond X5 Retail Group N.V.'s control. As a result, actual future results may differ materially from the plans, goals and expectations set out in these forward-looking statements.
Any forward-looking statements made by or on behalf of X5 Retail Group N.V. speak only as at the date of this announcement. Save as required by any applicable laws or regulations, X5 Retail Group N.V. undertakes no obligation publicly to release the results of any revisions to any forward-looking statements in this document that may occur due to any change in its expectations or to reflect events or circumstances after the date of this document.
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