Yandex Prices $600 Mln Of 1.125% Convertible Senior Notes Due 2018 - Quick Facts

(RTTNews) - Yandex N.V. (YNDX) announced the pricing of $600 million of 1.125% convertible senior notes due 2018 to qualified institutional buyers. The offering is scheduled to close on or about December 17, 2013.

The company has granted to the initial purchasers a 30-day option to purchase up to an additional $90 million of notes solely to cover over-allotments.

Yandex estimates offering net proceeds to be approximately $594 million (or approximately $683 million if the initial purchasers exercise their over-allotment option in full), after deducting expenses.

Yandex intends to use a portion of offering net proceeds to repurchase outstanding Class A shares, and the remainder of the net proceeds will be used for general corporate purposes.

The notes will be convertible into cash, Class A shares of Yandex or a combination of cash and Class A shares, at Yandex's election, based on an initial conversion rate of 19.4354 Class A shares per US$1,000 principal amount of notes, which is equivalent to an initial conversion price of approximately US$51.45 per Class A share.

Prior to June 15, 2018, the notes will be convertible only upon the occurrence of certain events and during certain periods, and thereafter, at any time until the close of business on the business day immediately preceding the maturity date of the notes.

The company added that the notes will bear interest at a rate of 1.125% per year, payable semi-annually in arrears on June 15 and December 15 of each year, beginning on June 15, 2014. The notes will mature on December 15, 2018.