Gallery Group in $175 Million Senior Notes Offering; First High Yield Debt Offering by Russian Company

May 12, 2006

Cleary Gottlieb represented Gallery Group in an offering of $175 million of its 10 1/8% senior secured notes due 2013. The notes will be listed on the EuroMTF.

Gallery is one of the largest outdoor advertising contractors in Russia. Gallery’s principal business is to provide outdoor advertising on billboards, street furniture and transit displays. This was the first offering of debt securities with a true “high yield” covenant package by a Russian company.