Tengizchevroil Finance Company International, a subsidiary of Tengizchevroil (TCO), raised $5 billion through an unregistered offering of senior secured bonds in the international markets and private loans that mirror the terms of those bonds.
The financing consists of $1.25 billion of senior secured bonds sold internationally to investors under Rule 144A/Regulation S and the remainder in the form of senior secured pari passu loans provided by partners. The financing had many notable features.
• The bonds were rated investment grade by Moody’s and Standard & Poor’s, piercing the Kazakhstan sovereign ceiling by one notch.
• The $500 million principal amount of bonds due 2025 priced at a yield to maturity of 2.75%, the lowest-ever U.S. dollar yield for any borrower from the region of the Commonwealth of Independent States.
• The $750 million principal amount of bonds due 2030 priced at a yield to maturity of 3.375%, the lowest-ever U.S. dollar yield for any borrower from Kazakhstan.
Director Guy Cooper and Associate Katie Martin of Conyers’ Bermuda office worked alongside Sullivan & Cromwell on the matter.