25 Jun 2014
VimpelCom’s subsidiary Wind Acquisition Finance S.A. announced the Pricing of €4,070 Million (equivalent) Senior Secured Notes Offering
Completes the refinancing of WIND Group achieving total annual interest savings of approximately EUR 300 Million
Amsterdam (June 25, 2014), “VimpelCom Ltd.” (“VimpelCom”, “Company” or “Group”) (NASDAQ:VIP),announced today the planned completion of the refinancing of WIND Group, which will result in approximately EUR 300 million of total savings in annual interest costs. This refinancing improves 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 €4,070 million (equivalent) Senior Secured Notes in a combination of €575 million euro-denominated Euribor plus 4.00% Floating Rate Notes due 2020 and of €3,495 million (equivalent) Fixed Rate Notes in a combination of €2,100 million 4.00% notes due 2020 and of US$1,900 million 4.75% notes due 2020.
The net proceeds of this offering will be utilized by WAF to refinance both the existing Senior Secured Notes due 2018 and the non-extended part of WIND's Senior Credit Facilities. The aim of the refinancing plan is to provide WAF and WIND with a more sustainable and 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 planned transaction completes the refinancing of WAF and WIND after the refinancing transaction announced on April 8, 2014.
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 €4,070 million (equivalent) Senior Secured Notes due in 2020 and the proposed uses of those funds to refinance WAF’s senior secured notes due 2018 and the non-extended part of WIND's senior credit facilities, as well as the potential benefits of such actions, including providing WAF and WIND with a more sustainable and manageable capital structure. 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 these financings will lead to a more sustainable and manageable capital structure for 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.
VimpelCom is one of the world’s largest integrated telecommunications services operators providing voice and data services through a range of traditional and broadband mobile and fixed technologies in Russia, Italy, Ukraine, Kazakhstan, Uzbekistan, Tajikistan, Armenia, Georgia, Kyrgyzstan, Laos, Algeria, Bangladesh, Pakistan, Burundi, Zimbabwe, Central African Republic and Canada. VimpelCom’s operations around the globe cover territory with a total population of approximately 754 million people. As of March 31, 2014 VimpelCom had 218 million mobile customers. VimpelCom Ltd. is headquartered in Amsterdam, the Netherlands, and listed as ADS on the NASDAQ Global Stock Market under the symbol "VIP". For more information visit: www.vimpelcom.com.