15 Jun 2016 15:32
Date: 15 June 2016
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION TO ANY PERSON LOCATED OR RESIDENT IN ANY JURISDICTION WHERE IT IS UNLAWFUL TO DISTRIBUTE THIS ANNOUNCEMENT. OTHER RESTRICTIONS APPLY.
NLMK places US$700 mln in 7-year Eurobond at 4.5% coupon rate.
NLMK (LSE: NLMK), an international steel producer which operates facilities in Russia, the USA and the EU, closed its US$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 (settlement is expected on 17 June 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, London Branch, ING Bank N.V., London Branch, J.P. Morgan Securities plc and Société Générale 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."
Enquiries:
Media contact info:
Sergey Babichenko
+7 (495) 411-77-10
babichenko_sy@nlmk.com
Investor Relations contact info:
Sergey Takhiev
+7 (495) 915 1575
tahiev_sa@nlmk.com
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About NLMK Group
NLMK Group is a vertically integrated steelmaking company, largest in Russia and one of the most efficient in the world. NLMK's production assets are located in Russia, Europe, and the United States. The Company's steel processing capacity is over 17 million tonnes per year, of which about 16 million tonnes are produced in Russia.
NLMK Group's high-quality steel products are used in a variety of industries, from construction and machine-building to the manufacture of power generation equipment and offshore windmills.
In Q1 2016, the Company generated $1.58 billion in revenue and $290 million in EBITDA. As of 31 March 2016, Net debt/EBITDA stood at 0.61х.
NLMK's ordinary shares are traded on the Moscow Stock Exchange (ticker "NLMK") and its global depositary shares on the London Stock Exchange (ticker "NLMK:LI"). The company's investment credit rating is BBB-.
NLMK Group was recognized as Steel Industry Leader at the prestigious 2016 Platts Global Metals Awards held by a leading international periodical S&P Global Platts, which provides analytical information on commodities and energy markets.
For more information on NLMK Group please visit www.nlmk.com/en.
DISCLAIMER
This document does not constitute an invitation or inducement to engage in investment activity within the meaning of the UK Financial Services and Markets Act 2000. This announcement is only being distributed to and is only directed at (1) persons who are outside the United Kingdom, (2) to investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or (3) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as "Relevant Persons"). The Notes to which this announcement relates are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such Notes will be engaged in only with, Relevant Persons. Any person who is not a Relevant Person should not act or rely on this announcement or any of its contents. Persons distributing this announcement must satisfy themselves that it is lawful to do so.
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