NLMK (LSE: NLMK), a leading global steel company, today announces the closing of its US$800 million 5-year Eurobond offering with an annual coupon rate of 4.45%. The proceeds from the issue will be used for NLMK’s general corporate purposes, including the refinancing of its debt.
The order book was several times oversubscribed, with participation of a broad range of international investors, including investors in the United States (48%), the United Kingdom (18%), Switzerland (14%), Continental Europe (16%), as well investors from Russia and other regions (4%). Approximately 70% of the issue was purchased by asset managers.
Deutsche Bank AG, J.P. Morgan Securities and Société Générale acted as Joint Lead Managers for the offering. The 4.45% Loan Participation Notes, or LPNs due 2018 were issued by Steel Funding Limited, an Irish company formed for the purpose of issuing LPNs.
Grigory Fedorishin, Chief Financial Officer of NLMK, said: “We are pleased with the results of the placement. The cost of funding we achieved demonstrates that capital markets are confident in our strategy and performance, considering NLMK to be one of the best in class companies in the global steel universe. The funds we raised provide the company with long-term financing at attractive terms and support further optimization of NLMK debt portfolio in terms of tenor and currency structure.”