The default on Eurobonds Russian Standard Ltd of Rustam Tariko has already come. The amount of the issue, according to Reuters, $ 451 million. The grounds for the default were at the beginning of the month - three days after the non-payment of the coupon that occurred on October 27, reported the issuance trust - the Citibank London unit - holders (the document was read by Vedomosti). Such a document did come, confirms two brokers, among whose clients there are holders of these papers, and a portfolio manager.
Russian Standard Ltd Eurobonds were issued in 2015 with the restructuring of two subordinated bond issues of the Russian Standard Bank by $ 350 million and $ 200 million with maturity in 2020 and 2024. Holders of subordinated bonds received 18% of the par value and the newest Eurobonds, the pledge for them was 49% of shares of the bank "Russian Standard". Eurobonds with redemption in 2022 are traded on the Frankfurt Stock Exchange, coupon - 13%. The last coupon payment was due on October 27, the holders of money did not receive.
And in September it became known that Russian Standard Ltd intends to identify the holders of Eurobonds. Then, investors in advance collected a coalition of more than 25% of the holders of the issue, in order to prevent a re-structuring of the debt.
Last week, the company again began to identify the holders: through the European Depository Russian Standard Ltd reported that it is negotiating with the holders to reach an agreement with them. If the investor wants to contact the issuer and discuss the situation with Eurobonds, he needs to send the issuer his data and specify the number of securities that he owns, the company told investors (the text was read by Vedomosti, its reliability was confirmed by two brokers and a portfolio manager) . "This is the issuer's first contact with the holders, for the first time it provided an address for communication," says one broker.
The representative of the holding "Russian Standard" does not agree with this position. "As we reported earlier, the issuer of bonds (special purpose company - SPV, it is not included in the" Russian Standard "group) is currently negotiating with the largest bondholders. We believe that they are constructive and, as previously reported, SPV bonds have nothing to do with the activities of the Russian Standard Bank, he told Vedomosti. "There is no news, and in the last few weeks there have been no changes in the legal status of the Eurobonds."
Russian Standard Ltd did send such a notice a few weeks ago, says a person close to one of the funds that invested in the paper. The issuer intends to identify holders to discuss with them a re-structuring of the debt, he said: "I know only one fund that is ready to discuss restructuring, and it's not us."
Investors intend to collect collateral for securities - 49% of the shares of the bank "Russian Standard", says a person close to one of the funds. In addition, they want to get seats on the board of directors and the right to conduct forensic examination, knows the representative of another holder of bonds.
If the holders manage to achieve this, the shareholders of the bank may become foreigners. The Central Bank, by tradition, refused to comment on the situation in the operating bank, the request to the Federal Antimonopoly Service remained unanswered.
Holders of bonds owning in aggregate at least 25% of the issue must give instructions to take a pledge on the subject of collateral, Tertychny Agabalyan's partner Ivan Tertychny says, so 49% of shares of the Russian Standard bank can be sold at public auction or directly to a third party . "In any case, the buyer will have to obtain the prior consent of the Central Bank. Even if the pledge agreement allows for the pledge holder to leave the subject of the pledge, it is unlikely that the bond issue terms will provide for the possibility of further distribution of the bank's shares among bondholders, "he notes. A representative of the Russian Standard holding company did not answer the question whether the holding plans to buy out 49% of the bank's shares if they pass to the bondholders.