XXI Century issues USD 150 mln in Eurobonds

XXI Century (XXIC LN: BUY) announced today that on May 23 it placed USD 150 mln in Eurobonds with coupon of 14% (7% p.a. until August 25, 2008). The issue matures in three years and has 1,500 warrants attached, each warrant giving the right to subscribe for 4,000 ordinary shares of the company. The warrants can be exercised from August 26, 2008 until May 23, 2011. Eurobonds and warrants will be listed on the Luxemburg Stock Exchange. Alexander Romanov: We think the news will have a positive impact on XXI Century’s stock price. The amount of debt financing raised by XXI Century this year is the largest of its domestic peers despite the tight credit market, which in our view, signifies investor confidence. The developer’s construction schedule envisages heavy CapEx in 2008-2010 and the newly raised debt financing decreases the risk of XXI Century selling off its projects or postponing construction, preventing potential portfolio value deterioration.