Alliance Oil puts shares at $ 100 million
Tomorrow we will know the outcome of the issue of Alliance Oil Company shares in the amount of 100 million dollars and placement of convertible bonds of 225 million dollars. Alliance Oil, which is controlled by the family of the President of Group «Alliance» Musa Bazhaeva became the first Russian company that went to a public distribution of shares from the beginning of the crisis. Analysts believe that the company chose a good time for entering the market and will use the funds primarily for the liquidation of its short debts, which in the first quarter were just under 410 million dollars.
Alliance Oil announced the start of the open placement of convertible bonds for 225 million dollars and shares in the new issue in the form of Swedish Depository Receipts (SDR) for 100 million dollars yesterday. Code Listing of bonds, maturing in 2014, will take place on the Luxemburg Stock Exchange. The loan may be repaid in three years if the price of SDR exceeds 130% of the value of bonds. The papers provide a quarterly coupon rate which will be determined in the range of 6.75 – 7.5%. SDR is expected to remain listed on NASDAQ OMX Nordic. According to a source familiar with the situation, the book of applications will be closed today, it is passing without a price corridor, and the results of the deployment are scheduled to make public on Friday.
