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Wednesday, May 23, 2007
SITRONICS announces redemption of US$ 200 million Eurobonds
MOSCOW, Russia - May 23, 2007 - JSC SITRONICS ("The Company") (LSE: SITR), a leading provider of telecommunications, IT and microelectronic solutions in emerging markets of Russia and the Commonwealth of Independent States, with a growing presence in Central and Eastern Europe, the Middle East and Africa, today announced that its 100% owned subsidiary Sitronics Finance S.A. will redeem US$ 200 million of outstanding Eurobond Notes due 2009 on June 27, 2007.
Sitronics Finance S.A. will redeem the Notes with a coupon rate of 7.875%, which were issued in March 2006, at a principal amount plus the applicable premium (as defined in the terms and conditions to the Notes) and an accrued and unpaid interest, if any, on the Notes up to but not including the redemption date.
As it was previously stated in SITRONICS IPO Prospectus, the Company plans to use approximately 25% of the IPO proceeds in the total amount of US$ 356.4 million for the repayment of its indebtedness. In accordance with this intention, SITRONICS plans to redeem approximately US$ 100 million of Eurobonds using IPO proceeds. This will allow the Company to reduce its total debt and to improve its leverage position.
The remaining part of the Eurobond issue is expected to be redeemed through the issuance of Ruble-denominated financial instruments. This will help SITRONICS to hedge its currency risks.
Mr. Dmitry Ivanov, Chief Financial Officer and First Vice President for Finance and Investments of SITRONICS, commented: "The redemption of the Eurobond notes and the refinancing of approximately half of the issue into the Ruble-denominated debt reflects prudent borrowing and foreign exchange hedging policy in the Company. Approximately 44% of Sitronics' revenues are generated in Rubles. The refinancing of the US dollar denominated debt into Rubles will allow us to increase the visibility in our cash flows."
The Trustee for the Notes is Deutsche Trustee Company Limited and the Principal Paying and Transfer Agent is the London Branch of Deutsche Bank AG.
For further information, please visit www.sitronics.com or contact:
SITRONICS
Alexander Boreyko, Investor Relations
Tel: +7 495 225 9826 / +7 916 105 8335
ir@sitronics.com
Elena Sanarova, Public Relations
Tel : +7 495 225 0030
Sanarova@sitronics.com
Shared Value Limited
Investor Relations
Matthew Hooper
Tel. +44 (0) 20 73215010
sitronics@sharedvalue.net
ABOUT SITRONICS
SITRONICS is a leading provider of telecommunication solutions, including software, equipment and systems integration, IT solutions and microelectronic solutions in Russia and the Commonwealth of Independent States, with a strong presence in Central and Eastern Europe and a growing presence in the Middle East and Africa.
SITRONICS serves over 3,500 clients, maintains offices in 29 countries, and exports its products and services to more than 60 countries around the world. SITRONICS has over 10,000 employees, of which approximately 4,600 are involved in research and development.
SITRONICS' key business operations are based in Prague (Czech Republic) and Athens (Greece) for its telecommunication solutions division, and in Kiev, (Ukraine) and Zelenograd (Russia) for its IT solutions and microelectronic solutions divisions, respectively. SITRONICS is majority owned by Sistema, the leading consumer services holding company in Russia and the CIS.
SITRONICS has developed strategic alliances in its home markets with Cisco Systems, STMicroelectronics, Infineon and Giesecke & Devrient, in relation to certain products and services. SITRONICS has vendor relationships with Siemens, Ericsson, Motorola, ORACLE, Intel, Sun Microsystems and Microsoft. Key customers include Sistema group companies, such as MTS, Comstar UTS and MTT, and also OTE, Cosmote, Vodafone, Ericsson, Arcelor Mittal (formerly Mittal Steel) and TCL of China.
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