The Bonds were offered under the exchange bonds program (4-00822-J-001P-02E) admitted to trading on 20 April 2016, as earlier announced on the Company’s website: http://corp.megafon.com/investors/news/capital_market_releases/20160422-1553.html. The nominal value of a bond is RUB 1,000 and the placement price was 100% of the nominal value. The new bond issue has a term of 5 years with no embedded put options. The final coupon rate for the Bonds was determined via the book building and set at 7.85% per annum. Under the terms of the Bonds issue, the coupon will be paid semiannually. The proceeds from the Bonds issue will be used to finance the Company’s general corporate purposes and refinance the Company’s existing liabilities. Allocation of the Bonds to investors will occur on the Moscow Exchange on or about 9 October 2017.
BCS Global Markets, Gazprombank, Russian Agricultural Bank and UniCredit Bank were the lead arrangers, with Gazprombank acting as placement agent.
MegaFon CFO Gevork Vermishyan commented: “7.85% per annum is the lowest rate ever for MegaFon’s public debt instruments and the lowest rate for the Russian corporate bond market since 2014. This deal is fully aligned with the company’s strategy of managing its debt portfolio and liabilities efficiency.”
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Notes to Editors
MegaFon PJSC is a leading Russian integrated telecommunication service provider, operating in all segments of the telecommunications markets in Russia, and in the Republics of Abkhazia, South Ossetia and Tajikistan. MegaFon is a recognized market leader in the provision of mobile data services, was the first operator in Russia to launch commercial operation of a third generation (3G) network and was the first operator in the world to launch commercial operation of an LTE Advanced (4G) data network. MegaFon is traded on the Moscow Exchange and the London Stock Exchange under the symbol MFON. Additional information about MegaFon and the products and services provided by MegaFon can be found at http://www.megafon.ru.
Cautionary Statement Regarding Forward Looking Statements
Some of the information in this document may contain or refer to projections or other forward-looking statements regarding future events or the future financial performance of the Company. You can identify forward looking statements by terms such as “expect”, “believe”, “anticipate”, “estimate”, “forecast”, “intend”, “will”, “could”, “may”, or “might” the negative of such terms or other similar expressions. The Company wishes to caution you that these statements are only predictions, and are based upon various assumptions which are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control. We may not achieve or accomplish these plans or predictions. The Company does not necessarily intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in projections or forward-looking statements of the Company, including, among others, general economic conditions, the competitive environment, risks associated with operating in Russia, rapid technological and market change in the industries in which the Company operates, as well as many other risks specifically related to the Company and its business and operations.
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The company increased its service revenue, OIBDA and net profit in spite of plummeting roaming and retail revenues.