9 Jun 2016 13:45
Date: 9 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.
TENDER OFFER RESULTS FOR NOTES DUE 2018 AND 2019
NLMK Group, the largest steel producer in Russia, notes the announcement by Steel Funding Limited of the results of the tender offers made by Steel Funding to holders of the U.S.$800,000,000 4.45 per cent. Loan Participation Notes due 2018 and the U.S.$500,000,000 4.95 per cent. Loan Participation Notes due 2019. Steel Funding is the special purpose vehicle established for the purpose of issuing the notes.
An aggregate of U.S.$311,426,000 principal amount of the 2018 Notes and U.S.$259,605,000 principal amount of the 2019 Notes were tendered and accepted for purchase. Following completion of the tender offers, an aggregate of U.S.$ 396,159,000 principal amount of the 2018 Notes and U.S.$ 211,109,000 million principal amount of the 2019 Notes will remain outstanding. The purchase price for the notes was U.S.$1,036.25 per U.S.$1,000 in principal amount of the 2018 Notes and U.S.$1,045.00 per U.S.$1,000 in principal amount of the 2019 Notes, plus accrued interest.
Capitalised terms used in this announcement but not otherwise defined have the meanings given to them in the Tender Offer Memorandum dated 31 May 2016. The tender offers are subject to the terms and conditions described in the Tender Offer Memorandum.
The Financing Condition described in the Tender Offer Memorandum is expected to be satisfied. Subject to the satisfaction of the Financing Condition, the settlement of the tender offers is expected to be on or about 17 June 2016.
The purchase of the Notes will be financed with the funds received from the net proceeds of the issuance of U.S.$700 million 4.50 per cent. loan participation notes due 2023. The settlement of the new issuance is expected to be completed on or about 15 June 2016.
The purpose of the tender offers is to enable Steel Funding to acquire, subject to the satisfaction of the Financing Condition, all the outstanding 2018 Notes and 2019 Notes that are validly tendered in the tender offers. Together with the contemplated issuance of the new notes, this would have the effect of extending the maturity profile of a portion of the NLMK's indebtedness.
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
* * *
About NLMK Group
NLMK Group is the largest vertically integrated steelmaker in Russia and one of the most efficient in the world. NLMK's metal products are used in various industries, from construction and engineering to the manufacturing of power-generating equipment and offshore wind turbines.
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.
NLMK's production assets are located in Russia, Europe, and the United States. The Company's steel production capacity exceeds 17 million tonnes per year, of which about 16 million tonnes are produced in Russia.
The company generated $8 billion in revenue, $1.95 billion in EBITDA and a net profit of $967 million in 2015. Net Debt/EBITDA is 0.56.
NLMK's ordinary shares are traded on the Moscow Stock Exchange (MICEX-RTS, ticker symbol: NLMK), and its global depositary shares are traded on the London Stock Exchange (ticker symbol: NLMK:LI). The company's investment credit rating is BBB-.
For more information on NLMK Group visit www.nlmk.com.
Neither this announcement, the Tender Offer Memorandum nor the electronic transmission thereof constitutes an offer to buy or the solicitation of an offer to sell Notes (and tenders of Notes for purchase pursuant to the Offers will not be accepted from Noteholders) in any circumstances in which such offer or solicitation is unlawful. The Notes have not been and will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold within the United States or to, or for the account or benefit of, US persons, except in certain transactions exempt from the registration requirements of the Securities Act.