NLMK signs €600 m revolving credit facility
NLMK Group signed a 4-year syndicated revolving credit facility (RCF) with a group of international banks in the amount of €600 m, with an accordion option allowing the Company to increase the funding limit to €1 bn.
A RCF is an arrangement which allows for cash amounts to be withdrawn and repaid as needed within the set limit, with interest charged based only on the current withdrawal amount. This facility helps ensure optimal liquidity without additional costs.
‘In spite of the complicated market environment, there was significant demand from American, European and Asian banks. The agreement would further improve our average cost of debt and extend our maturity profile,’ – commented CFO of NLMK Group, Shamil Kurmashov.
Crédit Agricole Corporate and Investment Bank, NATIXIS, Intesa Sanpaolo Bank Ireland Plc, SGBTCI, AO Raiffeisenbank, Bank of America Merrill Lynch International DAC, Mizuho Bank, Ltd., Deutsche Bank AG, London Branch, Bank ICBC (JSC), ING Bank N.V. and UniCredit S.p.A., acted as Mandated Lead Arrangers. ING Bank is the Coordinator and Documentation Agent, UniCredit S.p.A. is the Facility Agent. Debevoise & Plimpton LLP were the legal adviser to the company and Hogan Lovells International LLP acted as the legal adviser to the Lenders.
About NLMK Group
NLMK Group is the largest steelmaker in Russia and one of the most efficient in the world.
NLMK Group’s steel products are used in various industries, from construction and machine building to the manufacturing of power-generation equipment and offshore wind turbines.
NLMK operates production facilities in Russia, Europe and the United States. The Company’s steel production capacity exceeds 17 million tonnes per year.
NLMK has the most competitive cash cost among global manufacturers and one of the highest profitability levels in the industry. In 2019, the Company generated $10.6 billion in revenue and $2.6 billion in EBITDA. Net debt/EBITDA stood at 0.7х. The Company has investment grade credit ratings from S&P, Moody’s, Fitch and Expert RA.
NLMK’s ordinary shares with a 18.6% free-float are traded on the Moscow Stock Exchange (ticker "NLMK") and its global depositary shares are traded on the London Stock Exchange (ticker "NLMK:LI"). The share capital of the Company is divided into 5,993,227,240 shares with a par value of RUB1. For more details on NLMK shareholder capital please follow the link.
For more information about NLMK Group, please visit our website.
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