Developer O1 Properties says fails to pay coupon on $350 mln bond

MOSCOW, Apr 14 (PRIME) -- Russian real estate developer O1 Properties has failed to pay coupon on U.S. $350 million of 2021 Eurobonds in March, the company said in a statement on Tuesday.

O1 Properties said that some tenants had difficulties with paying their rent due to the coronavirus epidemic, volatility of oil prices, and ruble devaluation. As a result, the company failed to accumulate enough funds to fulfill liabilities to the bondholders. The company plans is studying different options of settling the situation. It hopes to start negotiations with the bondholders and to submit its proposals to them, O1 Properties said.

International rating agency S&P Global Ratings last week downgraded the long-term credit rating of O1 Properties to CC from CCC- with a negative outlook.

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