PAVA Reports Successful Additional Bond Repurchase

The aggregate amount of the deals made up RUR296,056.26. Earlier, the company announced that this small remaining share would be repurchased on schedule following the previous successful transaction.

10 Aug 2010 On August 4, 2009 the Altay-based grain processor PAVA fulfilled obligations on the additional repurchase of RUR1 bln. bond loan issued in November 2006.

The aggregate amount of the deals made up RUR296,056.26. Earlier, the company announced that this small remaining share would be repurchased on schedule following the previous successful transaction.

To recap, on May 6, PAVA already paid off significant part of the loan due for redemption, and reduced the company’s long term debt. At that time the coupon rate stood at 12.5%, and for the additional repurchase it was increased to 19%.

Although the global liquidity crunch has had an impact on agroindustry, leading to a series of defaults, a number of companies were able to withstand the negative trends. OJSC PAVA, which recently started transition to a vertically integrated agroholding, confirmed its reliability as a borrower, adding greater investor appeal. It became the only public company in Russian agrisector to fulfill all corporate obligations in due time.