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LenSpetsSMU has fulfilled its redemption obligation for the last installment and payment of CLN interest in full and on time On Friday, 20 August, CJSC SSMO “LenSpetsSMU” fulfilled the redemption obligation for the last installment (16.67% of the nominal) and payment of interest on credit linked notes (CLN) in full and on time. Thus, by the present moment the CLNs are fully repaid. Total consolidated indebtedness as of August 31, 2010 is $170 mil. NOTE: On 26 April 2007 Etalon-LenSpetsSMU placed credit linked notes for the amount of $100M. The maturity date according to the original terms and conditions – 26 April 2012, the put option date – 26 April 2009. Rate: 9.75%. The arranger of the issue was ROSBANK. On 3 March 2009 LenSpetsSMU reached an agreement with the note holders on changing the parameters of the notes, in particular, on the cancellation of the put option in April 2009, prolongation of obligations till August 2010 and mitigation of the procedure of observance of financial covenants. The borrower also received the right to early redemption of the credit linked notes (call options in each installment date except the first one), which made this financial tool more flexible. For its part, LenSpetsSMU agreed to increase the rate from 9.75% to 12% per annum and to fix the redemption procedure in six equal quarterly installments starting from 20 May 2009 till 20 August 2010. The change of the parameters of credit linked notes did not require from LenSpetsSMU the granting of collateral and/or selling of shares or warrants. The note holders voted unanimously. The arranger of the restructuring was ING Bank, the joint arranger was ROSBANK. The legal adviser of the transaction was Herbert Smith.
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