OJSC LSR Group (LSE: LSRG; MICEX, RTS: LSRG) executed the put option on its Series 02 bond issue after the fifth payment period.
A total of 468,812 bonds with a total value of RUB 469,440,208 (including the accumulated coupon payment) were bought back at the request of bondholders.
Elena Tumanova, CFO of LSR Group, commented:
“In my opinion, such a small amount of bonds called for redemption demonstrates a high creditworthiness for our company and confirms that debt investors consider LSR Group’s securities as safe investment. I also think that successful execution of the put option was due to the well-planned and considered debt policy of the company. We managed to nearly fully refinance our short-term debt, improved maturity profile and increased maturity terms. Besides, we reduced currency risks, having replaced debt nominated in foreign currency with long-term rouble-nominated loans thus decreased the total amount of debt”.
The following bond issue of RUB 5 billion was placed in August 2008. The number of bonds issued was 5,000,000 (five million) bonds. The nominal value of bonds was RUB 1,000 (one thousand) each. The lead manager of the issue was URALSIB Financial Corporation.
Note to Editors:
Please find information on LSR Group bank loans and bonds as of 31 December 2010 at: http://www.lsrgroup.ru/Files/file/debt_31_12_10.pdf