VimpelCom's subsidiary WIND Acquisition Finance prices Eur 3.8 billion senior notes for refinancing Eur 4.0 billion of debt
Amsterdam (April 8, 2014) - “VimpelCom Ltd.” (“VimpelCom”, “Company” or “Group”) (NASDAQ: VIP) announced today planned improvements in the capital structure of its indirectly owned subsidiaries WIND Telecomunicazioni S.p.A. (“WIND”) and Wind Acquisition Finance S.A. (“WAF”).
WAF priced a total of EUR 3,779 million (equivalent) Senior Notes due 2021 in a combination of EUR 1,750 million 7.00% EURO-denominated Senior Notes and of EUR 2,029 million (equivalent) 7.375% USD-denominated Senior Notes.
As announced on March 19, WAF intends to apply a portion of the net proceeds of this offering to refinance its junior secured 11.75% notes maturing in 2017 of EUR 2.7 billion. The remaining proceeds, along with a EUR 500 million indirect cash injection from VimpelCom, will allow Wind Acquisition Holdings Finance S.A. to redeem its 12.25% notes maturing in 2017 of EUR 1.3 billion. The EUR 500 million cash injection is conditioned upon the completion of the offering.
The aim of the refinancing plan is to provide WAF and WIND with a sustainable, manageable capital structure with an extended maturity profile and significant interest cost savings resulting in stronger cash flows, which will facilitate a deleveraging trajectory of WAF and WIND.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities in any state or jurisdiction. Securities may not be offered or sold in the United States unless registered under the Securities Act of 1933, as amended (the “Securities Act”) except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.
This press release contains “forward-looking statements”, as the phrase is defined in Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. These statements relate to the offering by WAF of EUR 3,750 million (equivalent) Senior Notes due in 2021 and the proposed uses of those and other funds, including a proposed EUR 500 million cash injection from a VimpelCom subsidiary, to refinance WAF’s junior secured notes and redeem WAHF debt, as well as the potential benefits of such actions, including the facilitation of deleveraging of WAF and WIND. The forward-looking statements included in this press release are based on management’s best assessments of the current situation. The actual outcome may differ materially from these statements. There can be no assurance that the offering will be completed, or that the EUR 500 million cash injection, a condition to the completion of the transactions contemplated by the offering, will be made as contemplated, and that these financings will lead to deleveraging of WAF and WIND. Certain factors that could cause actual results to differ materially from those discussed in any forward-looking statements include the risk factors described in the Company’s Form 20-F and other public filings made by the Company with the SEC, which risk factors are incorporated herein by reference. The Company disclaims any obligation to update developments of these risk factors or to announce publicly any revision to any of the forward-looking statements contained in this release, or to make corrections to reflect future events or developments.
Tel: +31 20 79 77 200 (Amsterdam)
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Bobby Leach/Artem Minaev
Tel: +31 20 79 77 200 (Amsterdam)