OREANDA-NEWS  On 06 November was announced, that despite challenging market conditions Absolut Bank supported Russian ball bearing maker European Bearing Corporation (EBC) joining USD 145mm Term Loan arranged by BNP Paribas, Commerzbank and HSBC (MLAs and bookrunners). EBC deal braved the market and the financing attracted strong support of investors which resulted in a subsequent increase from a launch amount of USD 100mm.

The Facility is split between USD 17.5mm one-year bullet tranche carrying one-year extension option and a USD 127.5mm three-year amortising term loan. Absolut Bank committed USD 25mm to three-year tranche participating in financing in MLA status.

EBC is the largest manufacturer of bearings in Russia and CIS, with an estimated market share of 46% as at the end of 2007. EBC holds a nearly-monopolistic position in two niche market segments; it controls 98% of Russia’s high-precision (aviation) ball bearing market and 88% of the railroad ball bearing market. The company has a USD 560mm supply contract with Russian Railways, which secures average annual revenue of USD 100 million until 2010.

The proceeds will be used by the Company for general corporate purposes and debt-refinancing.