24th Sep 2008 13:40
September 24, 2008
OAO Severstal today announced that it has successfully signed a 5-year syndicated loan facility.
OAO Severstal today announced that it has successfully signed a 5-year syndicated loan facility. The credit agreement secures $1.2 billion available immediately and provides for an option to further increase the facility amount. The facility bears an interest rate of LIBOR + 2.35% p.a. and has a 1.5 year grace period followed by quarterly repayments. The proceeds will be primarily used for acquisition of PBS Coals Company as well as other corporate purposes.
Commenting on the announcement, Sergei Kuznetsov, Severstal CFO, said: "I am pleased to announce the successful signing of the credit agreement. In the current volatile environment in financial markets it demonstrates the strength of our company and investors' confidence in our business model. We will use the facility to continue to grow our company and create value for our shareholders".
The List of Mandated Lead Arrangers includes ABN AMRO Bank N.V., the Bank of Tokyo-Mitsubishi UFJ, Ltd, Barclays Capital, The Investment Banking Division of Barclays Bank PLC, BNP Paribas SA, CITIBANK N.A. London Branch, COMMERZBANK Aktiengesellschaft, DEUTSCHE Bank AG, Amsterdam Branch and Société Générale.
BNP Paribas is a coordinator, documentation agent and security agent. Deutsche Bank is the facility agent. Deutsche Bank and ABN AMRO Bank N.V. are the passport banks.
About Severstal:
OAO Severstal is an international steel producer with a listing on the Russian Trading System and the London Stock Exchange. Incorporated in 1993, the company focuses on high value added and unique niche products and has a successful track record of acquiring and integrating high-quality assets in North America and Europe. Severstal owns mining assets in Russia, thus securing its supplies of raw materials. In 2007, Severstal produced 17.5 million tonnes of steel with revenues of US$15.2 billion, EBITDA of US$3.7 billion and earnings per share of US$1.92.
For further information:
Severstal
Dmitry Druzhinin, Investor Relations
Olga Antonova, Public Relations
+7 495 926 7766
Tulchan Communications
Dominic Fry/Tom Murray
+44 207 353 4200
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