Rustam Tariko share of alcoholic assets creditors – RBC

Roust Corporation Owner Roustam Tariko

Photo: Ekaterina Kuzmina/RBC

Roust Corporation, the management of alcoholic assets of Rustam Tariko, uncovered a scheme of debt restructuring to $ 750 million For payments to creditors the group is ready for transfer to the status of shareholders and IPO

Roust Corporation with respect managed to agree with 90% of holders of two issues of Eurobonds of the company on recapitalization and restructuring of the debt, the Roust. On the positive term of the debt settlement, but without a description of potential agreement with the creditors of the alcoholic holding company of Rustam Tariko was reported in early November.

the Restructuring should lead to lower its debt to $ 462 million at the end of the first half of 2016 exceed $ 1 billion ($ 750 million was accounted for by bonds and accrued interest). The deal will also allow to raise an additional $ 55 million in the share capital of Roust Corporation, which will be restructured.

From creditors to shareholders

the Most important changes will be the transfer of a vodka brand “Russian standard” — one of the main alcoholic of the group’s assets — the balance of Roust Corporation (now the brand is on the balance Roust Trading Ltd). According TSIFFRA, the share of “Russian standard” vodka in the premium segment in Russia for may 2016 to 35%. In addition, the bondholders will go to the status of shareholders of the company. The approved scheme for the first time will be deprived of Rustam Tariko 100% control over his alcohol assets.

the Deal is actually divided into several stages. Holders of senior credit notes (account for more than half of the total debt) convert them into securities of the new issue totaling $ 385 million with six years maturity (the interest on the issue will be paid from 1 January 2017) and another $ 20 million in cash. In addition, they will receive a 12,08% stake in the restructured Roust Corporation. More of 10.59% stake in the new structure will be the owners of Junior loan notes. Roust Trading Ltd, owned by Tariko, will receive 64,04% of the shares. The rest of the package in the size of 13.29% the company expects to attract in the capital of the company in the form of investment of $ 55 million — shares from this package can redeem as the holders of the bonds, thereby increasing its stake and structure Tariko.

the Deal on the restructuring is now in the stage of completion — the whole procedure is given 35-45 days, mentioned in the documents.

As expected, the restructuring will allow the company to strengthen its position as number two in the global beverage market (after the British Diageo) and to remain a leader in Central and Eastern Europe and Russia in terms of sales, the report indicates. New investments will allow the company to “more effectively carry out its business strategy around the world,” and to hold an IPO in the next two to three years. Thus the bondholders will have a preferential right of selling its stake in the proposed placement.

Obligations under bond issues, which for several years trying to restructure the company to a Russian businessman, he inherited after the acquisition in 2013 of alcoholic holding Central European Distribution Corporation (CEDC). Polish distributor could not agree on the settlement of debt by more than $ 1.3 billion, which was used for expansion in Russia. Structures Tariko managed to settle only with certain holders of securities — part of their debt was converted into new loan notes maturing in 2016 and 2018. But in the summer, the company began negotiations with bondholders about the next rollover of the debt.