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FESCO announces pricing of additional $75 million dual-tranche senior secured notes

15 May 2013
Far-Eastern Shipping Company plc («FESCO», and together with its consolidated subsidiaries, the «Group»), one of the leading transportation and logistics companies in Russia with operations in the ports, rail, integrated logistics and shipping businesses, announces that, on 14 May 2013, its indirect wholly owned subsidiary Far East Capital Limited S.A. successfully priced $75 million of senior secured notes placed in two tranches.

The placement consists of U.S.$50,000,000 8.00% New Senior Secured Notes due 2018 (the «New 2018 Notes»), to be consolidated and form a single series with the U.S.$500,000,000 8.00% Existing Senior Secured Notes due 2 May 2018 (the «Existing 2018 Notes»), and U.S.$25,000,000 8.75% New Senior Secured Notes due 2020 (the «New 2020 Notes») to be consolidated and form a single series with the U.S.$300,000,000 8.75% Existing Senior Secured Notes due 2 May 2020 (the «Existing 2020 Notes»). The Existing 2018 Notes and the Existing 2020 Notes were issued on 2 May 2013.

The New 2018 Notes have a yield to maturity of 7.659% and were priced at 101.375% plus accrued interest of U.S.$211,111 in respect of the period from, and including, 2 May 2013 to, but excluding, 21 May 2013.The New 2020 Notes have a yield to maturity of 8.209% and were priced at 102.500% plus accrued interest of U.S.$115,452 in respect of the period from, and including, 2 May 2013 to, but excluding, 21 May 2013.

The notes will be guaranteed on a senior secured basis by certain subsidiaries and parent companies of FESCO. Net proceeds will be used to repay outstanding debt of the Group and debt incurred in connection with the acquisition of FESCO in December 2012.

This announcement is not for distribution, directly or indirectly, in or into the United States (including its territories and possessions, any State of the United States and the District of Columbia). This announcement is not an offer or solicitation to purchase or subscribe for securities in the United States. Securities may not be offered or sold in the United States, or to, or for the account or benefit of, U.S. persons (as such term is defined under Regulation S under the U. S. Securities Act of 1933, as amended (the «Securities Act»), absent registration with the United States Securities and Exchange Commission or an exemption from registration under the Securities Act. The Group has not registered and does not intend to register any part of the offering in the United States or to conduct a public offering of securities in the United States.

This announcement is only being distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) to investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the «Order») or (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons in (i), (ii) and (iii) above together being referred to as «relevant persons»). Any securities described herein are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents.

In member states of the European Economic Area, this announcement is directed only at persons who are «qualified investors» within the meaning of article 2(1)(e) of Directive 2003/71/EC (the «Prospectus Directive») . This announcement is an advertisement and not a prospectus for the purposes of applicable measures implementing the Prospectus Directive.

In connection with the offer or sale of the securities referred to herein, Goldman Sachs International may over-allot the securities or effect transactions with a view to supporting the market price of the securities at a level higher than that which otherwise prevail. Any stabilisation action or over-allotment will be conducted by Goldman Sachs International in accordance with all applicable laws and rules.

Information contained in this document is not an offer, or an invitation to make offers, sell, purchase, exchange or transfer any securities in Russia or to or for the benefit of any Russian person, and does not constitute an advertisement of any securities in Russia. This information must not be passed on to third parties or otherwise be made publicly available in Russia. The securities have not been and will not be registered in Russia or admitted to «placement» and/or «public circulation» in Russia. The securities are not intended for «placement» or «circulation» in Russia except and to the extent permitted by Russian law.

About FESCO

FESCO is one of the largest Russian port owners and operators with integrated rail and logistics businesses and primarily focused on intermodal deliveries of containerized cargo. The Group owns port, rail and shipping assets, which allow it to provide door-to-door logistics solutions and control almost all steps of the intermodal transportation value chain. The majority of FESCO’s operations are located in the Russian Far East and the Group benefits from growing trade volumes between Russia and Asian countries.

FESCO controls the Commercial Port of Vladivostok, which has throughput capacity of 3.9 million tons for general cargo and oil products, 150,000 vehicles and over 600,000 TEUs in containers. FESCO is one of Russia’s top 10 private railcar operators providing services under the Transgarant (100%) and Russkaya Troika (50% JV with Russian Railways) brands. Transgarant has approximately 16,200 units of rolling stock consisting of 12 different types of railcars, and Russkaya Troika has approximately 1,570 fitting platforms. FESCO operates a container park of over 35,000 containers with total capacity of over 56,000 TEUs. As of 31.12.2012 FESCO also has 26 ships mostly deployed through own line and logistics operations.

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