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UTK Places in Full Its Series BO-01 Bond Issue for RUB2 billion(M2 PressWIRE Via Acquire Media NewsEdge) KRASNODAR, Russia - Southern Telecommunications Company ("UTK")(RTS: KUBN, KUBNP; MICEX: UTEL, UTELP; ADR OTC: STJSY, KUE FRA), the principal fixed-line telecommunications provider for Russia's Southern Federal District, announced today the results of the October 21, 2009 placement of the Company's series BO-01 Exchange-traded bonds worth 2.0 billion rubles, subject to mandatory centralized custody, through the MICEX Stock Exchange. The issue was placed in the form of public subscription for one day. There was strong demand from investors. In the course of the placement, the rate of the 1st coupon was fixed at 11.00%. 91 applications were submitted for the total amount, exceeding the volume of the issue by more than two and a half times. JSC AKB Svyaz-Bank acted as Arranger for the issue. The Underwriters were BK REGION, IG Capital, Globexbank, IB Otkrytie, Promsvyazbank, Rus-Bank, Uglemetbank, UK Dostoyanie, IFK Metropol. The following companies acted as co-underwriters: GK Deposit Insurance Agency (Agentstvo po Strakhovaniyu Vkladov), Nordea-Bank and RON-Invest Parameters of series BO-01 issue of the Exchange-traded Bonds Parameter Identification characteristics Identification No. 4B02-01-00062-A of 9 October 2009 Form of placement Tender to set the first coupon interest rate Type of placement Public subscription Arranger of placement OJSC AKB Svyaz-Bank Starting date of placement 21 October 2009 Number of securities to be placed, bonds 2,000,000 Face value,roubles 1,000 Total nominal value of the issue, roubles 2,000,000,000 Retirement date 1,092nd day from the placement start date Coupon interest rates Interest rates on the second, third, fourth, fifth, sixth, seventh and eighth coupons are equal to the first coupon interest rate Offer Buyback offer, date of the Exchange-traded bonds' repurchase is 21st October, 2011 About Southern Telecommunications Company Southern Telecommunications Company PJSC, or UTK, is the principal provider of fixed line telecommunications for Russia's Southern Federal District, a region covering 521.9 ths sq km with population of 18.4 million people. "UTK" PJSC provides various telecom services of local and intra-zonal telephony, broad range of value-added services (VAS) based on new technologies (services of Internet, VPN, CTV and others). H1 2009 operating revenue of "UTK" PJSC is up 4.9% over H1 2009 to 10,751.1 million rubles (RAS). Number of lines per employee is up 3.9% to 159.4 lines (RAS). Internet broadband access subscriber base includes 452.7 thousand users as of 1 July 2009. UTK is a subsidiary of Svyazinvest holding which owns 38% of the Company's authorized capital. UTK shares are traded in the Classic (KUBN; KUBNP) and Stock (KUBNG; KUBNPG) Markets of OJSC "RTS", in the stock section of the Moscow Interbank Currency Exchange (MICEX) (UTEL; UTELP). One unit of American Depositary Receipt of "UTK" PJSC represents 50 common shares of the Company. UTK ADRs are traded in the US over-the-counter market (STJSY), and quoted in the over-the counter market of Frankfort and Berlin Stock Exchanges (KUE) and NEWEX (KUE). Additional information about the Company can be accessed on the website at www.stcompany.ru, in the Information Disclosure System SKRIN Issuer, in the portal www.cbonds.info as well as in KUBN_RU of the systems Bloomberg and Reuters. ((Comments on this story may be sent to [email protected])) (c) 2009 M2 COMMUNICATIONS |