Metalloinvest Finance Designated Activity Company / Miscellaneous - High Priority
05-May-2017 / 11:59 CET/CEST
Dissemination of a Regulatory Announcement, transmitted by EquityStory.RS, LLC - a company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
Metalloinvest improves loan portfolio parameters
Moscow, Russia - 5 May 2017 - Metalloinvest ('the Company'), a leading global iron ore and HBI producer and supplier, and one of the regional producers of high-quality steel, has signed an agreement with a syndicate of banks for a USD 1.05 bn pre-export finance facility with an option to draw an additional USD 450 mn (the 'PXF-2017') .
According to the terms of the agreement, the PXF-2017 is divided into two tranches:
- USD 800 mn five-year tranche with a three-year grace period;
- USD 250 mn seven-year tranche with a five-year grace period.
Both tranches have floating interest rates linked to one-month LIBOR. The funds are scheduled to be disbursed in July after completion of certain conditions precedent and will be used to refinance the major part of the Company's existing pre-export finance facilities on more favourable commercial terms.
17 financial institutions from Europe, the USA, China, Japan and Russia participated in the transaction.
Andrey Varichev, CEO of Management Company Metalloinvest, commented:
'In 2017, the Company continues to proactively refinance its loan portfolio and optimise borrowing terms as a part of its financial policy. Metalloinvest's credit quality is highly rated by banks and the wider investment community due to its financial stability and prudent approach to debt management. This was affirmed by the considerable level of interest from financial market participants in the PXF-2017 and the Company's new Eurobond, issued on 2 May 2017. As a result, our total refinancing of foreign currency debt will amount to USD 1.7 billion.'
Alexey Voronov, Finance Director of Management Company Metalloinvest, added:
'The PXF-2017 will enable the Company to improve the maturity schedule of its loan portfolio and reduce its debt servicing costs. The using funds from the PXF-2017 to partially repay existing pre-export finance facilities, as well as the refinancing of USD 667 million of Eurobonds through a new bond issuance will enable the Company to decrease its debt payments due in the period 2017-2020 by almost half to USD 1.7 billion from USD 3 billion as at the end of 2016.'
# # # #
For more information, please contact:
Director of Investor Relations and Corporate Ratings
E: [email protected]
T: +7 (495) 981-55-55
Metalloinvest is a leading global iron ore and merchant HBI producer and supplier, and one of the regional producers of high-quality steel. The Company has the world's second-largest measured iron ore reserve base and is one of the lowest-cost iron ore producers.
Metalloinvest is wholly owned by USM Holdings. Alisher Usmanov is the major beneficiary of USM Holdings (49%), with other major beneficiaries being the companies of Vladimir Skoch (30%) and Farhad Moshiri (10%).
The EquityStory.RS, LLC Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de/ukreg