Russia's Rosneft to get $30 bil loans, use TNK-BP cash to buy oil venture
Moscow (Platts)--27Nov2012/622 am EST/1122 GMT
Russia's Rosneft expects to get up to $30 billion in loans from
international banks and may also use its own and TNK-BP's cash to help
finance acquisition of a 100% equity stake in the Anglo-Russian oil venture
from BP and Russian group AAR, the company said in its Eurobond prospectus.
The Russian oil company intends to fund the acquisition with a
combination of its own as well as TNK-BP's money; new borrowings from Russian
and international banks; as well as proceeds of issues of debt securities in
Russia and internationally, it said in the prospectus prepared for a series
of road shows with investors that started this week.
The company is considering $10 billion-worth Eurobonds placement.
Rosneft estimates the existing cash resources on the consolidated
balance sheets of Rosneft and TNK-BP at over $15 billion as of September 30,
2012, it said in the document seen by Platts.
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Rosneft has also received a commitment from a syndicate of international
banks to lend it about $30 billion, including up to $7.5 billion in long-term
financing, to fund the combined TNK-BP acquisition, it said.
On October 22, Rosneft announced two separate agreements to acquire 50%
stakes in TNK-BP Limited, the ultimate holding company of TNK-BP, from BP and
AAR. The total consideration payable by Rosneft under the agreements will
amount to $45.1 billion in cash, excluding applicable interest, and a 12.84%
equity interest in Rosneft.
Rosneft noted that the two acquisitions are entirely independent, and
either could be consummated without the other, leaving Rosneft with only a
50% equity interest in TNK-BP.
The deal with BP is expected to be closed in the first half of 2013,
while no timeframe is given for the deal with AAR.
In the prospectus, Rosneft has also disclosed additional details on the
terms of the two deals, in regard to additional interest payments.
Rosneft is to buy a 50% interest in TNK-BP from BP (in respect of which
definitive agreements were signed last week) for $17.1 billion in cash (plus
interest thereon in the amount of $1.6 million per day from the period
spanning October 18, when Rosneft submitted its proposal to BP, to the date
when the deal is closed) and 1,360,449,797 Rosneft shares, representing a
12.84% stake in Rosneft, currently held in treasury, the document said.
Under the agreement, BP will buy from Rosneft's parent, Rosneftegaz, a
further 600 million Rosneft shares, representing a 5.66% stake in Rosneft, at
a price of $8.00/share (plus interest thereon at a rate of 3.5% per annum
from and including 18 October 2012 to but excluding the closing date), it
Rosneft is also to buy a 50% interest in TNK-BP from the AAR consortium
(which remains subject to negotiation of definitive agreements) for $28.0
billion in cash (plus interest thereon at a rate of 3.75% per annum from and
including 16 October, when its buyout framework agreement was signed, to but
excluding the closing date), it said.
--Nadia Rodova, email@example.com
--Edited by Jeremy Lovell, firstname.lastname@example.org