Leading global law firm Baker McKenzie has advised PJSC KOKS in connection with the issuance of US$350 million 5.90% Notes due 2025 by IMH Capital D.A.C. in Rule 144A / Reg S format and a cash tender offer together with an exit consent solicitation to the holders of US$500 million 7.50% Notes due 2022 issued by KOKS Finance D.A.C. The new Notes were listed on the Global Exchange Market of the Irish Stock Exchange.
Founded in 1924, now a parent company for Industrial Metallurgical Holding Group, PJSC Koks primarily involved in the production and distribution of coke and coal concentrate, iron ore concentrate and pig iron.
The Baker McKenzie team was led by Dmitry Dembich, Capital Markets partner in Moscow, partners Roy Pearce and Megan Schellinger in the London Capital Markets Group, counsel Charles Farnsworth (London) and senior associate Maxim Khrapov (London), assisted by associates Adil Guseynov and Polina Govkelevich (Moscow) and Andrew Brown (London).
The Joint Lead Managers involved in the transaction were Citi, Renaissance Capital, Alfa Bank, Gazprombank, Sber CIB and VTB Capital and Sova Capital as co-manager of the new Eurobond.
Sergey Frolov, Vice President for Strategy and Communications of PSJC Koks, commented, “In September 2020, our company tapped the markets with a new Eurobond offering in addition to an exit consent with respect to outstanding notes due in 2022. Both transactions have proved to be very successful. The new offering has been priced at the record low interest rate of 5.9% per annum, which is one of the best results for borrowers with a B/B2 credit rating by Fitch and Moody's.”
He continued, “The outstanding notes due in 2022 have been tendered and redeemed in full. We are grateful to our investors for their help and support. We are also grateful to Baker McKenzie, who acted as our legal counsel in connection with both transactions and have provided invaluable assistance with their preparation. The firm's associates worked with us 24 hours, 7 days a week and I can say with certainty that a large part of our success is achieved thanks to their support."
Commenting on the transaction, London-based Baker McKenzie senior associate Maxim Khrapov said, "This issuance and exit consent shows IMH's commitment to sound fiscal management and long-term growth plans, and we were delighted to have advised our long-standing client on this complex and significant transaction.”
This transaction is the latest example of Baker McKenzie's cross-border DCM and liability management expertise. Since 2019 we have advised on consent solicitations for KazTransGas, Georgia Capital and TransCapitalBank and an exit consent for Ardshinbank.
The transaction closed on 8 October 2020.