Cherkizovo Group announces rur 2 billion bond issueMoscow, 6 June 2006 - OJSC Cherkizovo Group ("the Group"), one of Russia's leading integrated and diversified meat producers, announced today that it has raised RUR 2 billion through an issue of RUR 2 million Callable Bonds due 2011 (the "Bonds").
The coupon rate, payable semiannually, was set at 8.85% for the first 3 years, with the rate for the subsequent years to be determined by the Group at a later stage. Cherkizovo Group has an option to call the Bond three years after the issue. The net proceeds of the bond issue will be applied mostly towards restructuring of the Group's debt.
The Bond Issue of Cherkizovo Group has been registered with FSFM on 11 May 2006.
Gazprombank was the lead arranger and underwriter of the issue and Renaissance Capital was the co-arranger. FC Uralsib, Bank Zenit, IMB, IG Region, ICB, AKB "AK Bars", Gazenergoprombank and Khanti-Manchiysky Bank were joint underwriters of the issue.
Sergei Mikhailov, the CEO of Cherkizovo Group, commented on the results of the placement: "The successful Bond Issue has once again demonstrated the broad investor interest to Cherkizovo Group and confirmed the attractiveness of our sector overall. We will use the proceeds of the issue to further optimize our debt structure, a process which we have started already following the recent IPO on the London Stock Exchange. We would like to thank Gazprombank and Renaissance Capital for primary distribution of the issue on such a high level."
Igor Rusanov, Vice-President of Gazprombank, said: "The Bond Issue of Cherkizovo Group is an outstanding success for the company, as the achieved coupon rate of 8.85% is the lowest amongst Russian companies in the food sector."
FORWARD-LOOKING STATEMENTS. This press release may contain forward-looking statements regarding future events or the future financial performance of Cherkizovo Group. These statements are not guarantees of future performance, which is subject to risks, uncertainties and assumptions that cannot be predicted with certainty. Accordingly, actual outcomes and results may differ materially from those expressed in the forward-looking statements. Cherkizovo Group does not intend to update these statements to reflect actual results.
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These materials are not an offer for sale of any securities of OJSC Cherkizovo Group in the United States. Any securities of OJSC Cherkizovo Group may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. OJSC Cherkizovo Group does not intend to register any portion of the offering in the United States or to conduct a public offering of any securities in the United States.
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