News

US: CEDC pulls stock-swap proposal as Russian Standard steps in

Most popular

Everywhere is now a drinking occasion - Trends

How DNA testing will shape the future of drinking

Pernod Ricard Performance Trends 2015-2019

Major spirits brands dodge the US tariff bullet

Where should wine focus its on-premise efforts?

MORE

Central European Distribution Corporation (CEDC) has abandoned its stock-swap proposal for the set of notes that expired late last week.

The US-based spirits company, which has been battling with debt in recent months, said earlier this week that last month's proposal to exchange stock for the proceeds of the 3% Convertible Senior Notes due on 15 March has been terminated. Instead, noteholders will be offered a pro-rata share of of $25m in cash and an aggregate principal amount of $30m secured notes.

Both the cash and the new secured notes are being put up by Roust Trading, a unit that is part of Roustam Tariko's Russian Standard empire. Roust Trading, which holds around $102.6m of the 2013 notes, has worked with “other beneficial owners holding an aggregate of about $85.7m” of the 2013 notes to make the offer.

“Based on this proposal,” CEDC said, “holders of 2013 notes participating in the Roust Trading exchange offer would receive an estimated recovery of 35.4% of principal amount on the 2013 notes.”

SPI Group, which owns the Stolichnaya vodka brand, holds some of the 2013 notes, although it was not immediately clear if it is part of the “other beneficial owners” group. Last week, SPI Group confirmed to just-drinks that it is mulling making a joint bid for CEDC.


Related Content

How can Scotch whisky build on 2017 growth in the years to come? - Research in Focus

How can Scotch whisky build on 2017 growth in the years to come? - Research in Focus...

How to grow organically, results season approaches and how my stock is faring - The just-drinks analyst

How to grow organically, results season approaches and how my stock is faring - The just-drinks anal...

Cybersecurity fears deepen as risks intensify - World Economic Forum's Global Risks Report 2018 - Part II

Cybersecurity fears deepen as risks intensify - World Economic Forum's Global Risks Report 2018 - Pa...

Cognac bounces back for Remy Cointreau in US, with Moet Hennessy in its sights - Analysis

Cognac bounces back for Remy Cointreau in US, with Moet Hennessy in its sights - Analysis...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?