NLMK closed its $700 million 7-year Eurobond offering with an annual coupon rate of 4.5%. Interest payments on the Eurobonds are payable semi-annually.
The proceeds from the issue will be used to finance the purchase of existing notes due 2018 and 2019 in accordance with the terms and conditions of the tender offer announced May 31, 2016, as well as for NLMK’s general corporate purposes and refinancing of its current debt.
The order book indicated a high level of demand from a broad range of international investors, including investors in the European Union, the United States and Russia, as well as various regions in Asia. Deutsche Bank AG, ING Bank N.V., J.P. Morgan, and Societe Generale acted as the Joint Lead Managers for the new issue. The 4.5% loan participation notes due 2023 were issued by Steel Funding Limited, an Irish company formed for the purpose of issuing the notes.
Grigory Fedorishin, chief financial officer of NLMK, commented: “We are pleased with the positive market reaction to our Eurobond offering. The success of the placement reflects the strong investor confidence in the quality of NLMK’s assets and its strategy despite current difficult market conditions. The issue provides us with long-term financing at attractive terms and gives NLMK more flexibility in achieving its strategic goals. As a result our weighted average maturity of the portfolio extended from 2.6 years to 3.6 years, the coupon rate we achieved was one of the lowest in the recent transactions among the metals and mining universe”. (NLMK/Ukrainian metal)
