29 July 2013
NLMK closes order book for two bond issues for a total of RUB 10 billion
NLMK (LSE: NLMK), the leading global steelmaking company, has closed the order book for its BO-11 and BO-12 exchange bond issues with a value of RUB 5 billion each, a maturity period of 10 years each, and a put option in 3 years after the date of placement.
August 1, 2013 was set as the starting date of the BO-11 series bond placement through public subscription at the Moscow Interbank Currency Exchange (MICEX), and August 6, 2013 was set for the BO-12 series.
In the course of marketing the two issues, book orders were placed by 90 investors for a total of around RUB 25 billion.
NLMK has set the first coupon rate at 8.00% per annum. The rate of coupons 2-6 is equal to the rate of the first coupon. Given the market situation, the offering price, the coupon rate for exchange bonds and the current demand, NLMK made the decision to accept orders from 42 investors.
Proceeds from the placement of the bonds will be used for general corporate purposes.
Gazprombank, VTB Capital and Sberbank CIB acted as lead managers.
NLMK is a vertically integrated steelmaking company with production facilities in Russia, Europe and the USA. The Company’s crude steel capacity is over 17 m tpa. The Company generated USD 12.2 bn in revenue and USD 1.9 bn in EBITDA in 2012. NLMK’s ordinary shares are traded on the Moscow Stock Exchange (MICEX-RTS) and its global depositary shares on the London Stock Exchange.