22 Oct 2008 10:54
MMK completes redemption of $300 million Eurobond
Magnitogorsk Iron and Steel Works, a leading integrated Russian steelmaker, today announced the redemption of its $300 million Eurobond which matured on October 21, 2008. The Eurobond was redeemed through MMK Finance S.A.
The Eurobond was issued in October 2003 in the amount of $300 million with a coupon rate of 8% and maturity on October 21, 2008 and was guaranteed by OJSC Magnitogorsk Iron and Steel Works (MMK). Coupon payments for the entire period amounted to $120 million.
The capital raised through the Eurobond placement was used for corporate purposes, including financing of MMK's modernization program.
According to US GAAP financial statements of MMK group of companies for H1 2008, as of June 30, 2008 total debt equalled $1.364bn, net debt - $208mn.
Information about MMK:
The Magnitogorsk Iron and Steel Works OJSC (MMK) is among the world's largest steel producers and is one of the leaders of Russia's steel industry. The Company is a large steel producing complex encompassing the entire production chain, from preparation of iron ore to downstream processing of rolled steel. MMK turns out a broad range of steel products with a predominant share of value added goods. In 2007 the Company produced 13.3 m tonnes of crude steel, and 12.2 m tonnes of commercial products. US GAAP sales stood at USD 8.2 bn, with net income at USD 1.8 bn
Contacts:
MMK:
Elena Azovtseva +7 3519 24 90 82 e-mail: azovtseva@mmk.ru
Evgeny Kovtunov +7 3519 24 93 55 e-mail: kovtunov@mmk.ru
Finsbury:
Brian Cattell, Peter Russell, Sophia Matveeva +44 207 251 3801
MMK.L (MMK)