18th Mar 2019 17:35
LONDON (Alliance News) - Miner and steelmaker Evraz PLC said Monday four investors plan to sell a combined 25.4 million shares in the firm through a placing, shortly after it launched a tender offer to repurchase USD700.0 million in notes due April 2020.
Greenleas International Holdings Ltd, Abiglaze Ltd, Crosland Global Ltd, and Toshi Holdings Ltd will together offer 25.4 million shares - equivalent to 1.8% of outstanding capital in the firm - through a share placing.
Of these 25.4 million, 45% will be sold by Greenleas, 33% by Abiglaze, 17% by Crosland and 4.8% by Toshi.
Earlier on Monday, Evraz explained it would offer to acquire USD700.0 million of its 6.5% notes that are currently outstanding. It offered USD1,037.50 per USD1,000 in principal amount of the notes.
The notes re-acquired will be cancelled.
"The purpose of the tender offer is to acquire any and all of the outstanding notes that, provided that the financing condition is satisfied, will be funded by the issuance of the new notes in order to extend the maturity of a portion of the group's indebtedness," Evraz explained.
In order to fund the tender offer, Evraz proposed to issue new "unsecured and unsubordinated notes".
Later on Monday, credit analyst Moody's Investors Service attached a Ba2 credit rating to these new notes to fund the offer. This was lower than the Ba1 long-term credit rating handed to Evraz by Moody's. The credit firm explained the difference reflected the fact that the new notes were likely to be "subordinated" to existing debt held by the group.
Evraz shares closed up 1.9% at 630.00 pence each on Monday.
Related Shares:
Evraz