OREANDA-NEWS. September 24, 2008. OAO Severstal today announced that it has successfully signed a 5-year syndicated loan facility. The credit agreement secures USD 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 Sociйtй Gйnйrale.

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.