OREANDA-NEWS. October 5, 2012. “Megafon Finance” LLC, a subsidiary of “MegaFon” LLC (hereinafter, “the Company”) closed the order book for its issue of Series 05 bonds worth RUB 10 bln. The bond offer from the issuer stipulates a two-year put option after placement and a ten-year tenor.

The deal drew a large amount of interest from the investment community. During book-building, demand for the “Megafon Finance” LLC bonds exceeded the issue amount more than three-fold, which allowed for a lowering of the coupon guidance to 8.00-8.10% annually before the book was closed. Initial coupon guidance had placed the rate in the range of 8.20-8.45% annually.

The final range for the bond sale showed over fifty investor bids. According to the final results of the book-building, the coupon rate for the Series 5 bond issue was set at 8.05% annually.

Settlements for the bond sale will take place on the MICEX stock exchange on October 11, 2012.

The arrangers of the issue were: CJSC “VTB Capital” and Sberbank CIB (CJSC "Sberbank CIB")
 Co-arranger: CJSC “GLOBEX Bank”
 Underwriter: “Ron Invest” LLC

“We are very pleased that our offer was warmly welcomed by the market, which was evidenced by the more than three-fold oversubscription. The impressive demand for our securities reflects the high degree of trust that investors have in the Company. The proceeds from the offering will be used to pay off current short-term debt, which will allow the structure of the portfolio to be improved due the extension of its average life and cheapening of rates,” commented Gevork Vermishyan, Deputy CEO, Chief Financial Officer at “MegaFon” LLC.