20 Feb 2013 07:00
NOT FOR DISTRIBUTION, DIRECTLY OR INDIRECTLY, INTO THE UNITED STATES OF AMERICA OR RUSSIAN FEDERATION
NLMK successfully closes its US$800 million 5-year Eurobond
NLMK (LSE: NLMK), a leading global steel company, today announces the closing of its US$800 million 5-year Eurobond offering with an annual coupon rate of 4.45%. The proceeds from the issue will be used for NLMK's general corporate purposes, including the refinancing of its debt.
The order book was several times oversubscribed, with participation of a broad range of international investors, including investors in the United States (48%), the United Kingdom (18%), Switzerland (14%), Continental Europe (16%), as well investors from Russia and other regions (4%). Approximately 70% of the issue was purchased by asset managers.
Deutsche Bank AG, J.P. Morgan Securities and Société Générale acted as Joint Lead Managers for the offering. The 4.45% Loan Participation Notes, or LPNs due 2018 were issued by Steel Funding Limited, an Irish company formed for the purpose of issuing LPNs.
Grigory Fedorishin, Chief Financial Officer of NLMK, said: "We are pleased with the results of the placement. The cost of funding we achieved demonstrates that capital markets are confident in our strategy and performance, considering NLMK to be one of the best in class companies in the global steel universe. The funds we raised provide the company with long-term financing at attractive terms and support further optimization of NLMK debt portfolio in terms of tenor and currency structure."
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About NLMK
NLMK is an international vertically-integrated steel company with production facilities located in Russia, Europe and the US. The liquid steel capacity of its operating units exceeds 15 mtpy. The Company generated US$11.7 billion of revenues and a 19.5% adjusted EBITDA margin for the full year 2011. The Company's shares and GDSs are traded on the MICEX-RTS and LSE, respectively.
NLMK is rated "BBB-" by Standard and Poor's and Fitch. It is also rated "Baa3" by Moody's.
Contacts:
NLMK
Sergey Takhiev
Investor Relations
+7 495 915 1575
st@nlmk.com
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