Renaissance Offers to Buy Back LPNs

Renaissance Group has offered to buy back loan participation notes issued by one of its units for 49 cents on the dollar, a spokesman said Tuesday.

Renaissance announced an offer to use up to $85 million to buy some of the $300 million, 9.5 percent loan participation notes issued by Renaissance Consumer Funding Limited that are due in June 2010, said spokesman Simon Moyse.

Renaissance will offer to buy back the debt at a price not greater than $490 per $1,000 principal amount, according to a copy of the offer document, which was confirmed by the spokesman.

"Commercial Bank Renaissance Capital is, among other objectives, currently seeking to optimize its liability portfolio and reduce the cost of its debt," the offer document stated.

"CBRC wishes to use available cash to reduce the amount of its outstanding debt," the offer document added.

Renaissance's eurobonds maturing in November 2009 yield more than 40 percent, according to Reuters pricing.

If domestic revenues are devalued by a fall in the ruble, which has already fallen more than 17 percent against the U.S. dollar since July, those servicing costs could soar, and such debt buyback offers could become more frequent.

Renaissance expanded heavily over the past decade by pushing into Africa and former Soviet republics. But as markets tumbled, Russian investment banks saw their lending, investment banking and trading revenues crimped.