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BMB Munai, Inc. (KAZ) Reaches Restructuring Agreement with Convertible Bondholders

|Includes: BMB Munai, Inc (KAZ)

BMB Munai, Inc. reported that the company has reached an agreement with a group of bondholders on a restructuring of one of its outstanding bond issues.

BMB Munai, Inc. has been negotiating with the owners of $60 million principal value of the company’s 5% senior convertible notes due 2012. The restructuring changes are contained in Supplemental Indenture No. 2, to be executed by both the bondholders and the company.

BMB Munai, Inc. is required to make a cash payment of $1 million towards the principal balance of the notes, and the company will also increase the interest rate on the convertible note issue from 5% to 9%, to be paid semi annually.

BMB Munai, Inc. has also agreed to make an additional interest payment during the year if the company’s cash flow exceeds a predetermined level. The company is also required to make quarterly principal amortization payments if the cash flow exceeds this predetermined level.

Supplemental Indenture No. 2 also extends the maturity date of the convertible note issue to July 13, 2013, and reduces the conversion price of the convertible issue to $2.00 per share.

BMB Munai, Inc. will pledge its interests in Emir Oil, LLP, the company’s subsidiary, and the production licenses for the Aksaz, Dolinnoe and Kariman fields to secure the notes.

For more information on the company, go to bmbmunai.com
 
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