OREANDA-NEWS. November 06, 2008. Despite challenging market conditions Absolut Bank supported Russian ball bearing maker European Bearing Corporation (EBC) joining US145mm Term Loan arranged by BNP Paribas, Commerzbank and HSBC (MLAs and bookrunners), reported the press-centre of Absolut Bank.

EBC deal braved the market and the financing attracted strong support of investors which resulted in a subsequent increase from a launch amount of US 100mm.

The Facility is split between US 17.5mm one-year bullet tranche carrying one-year extension option and a US 127.5mm three-year amortising term loan. Absolut Bank committed US 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 US 560mm supply contract with Russian Railways, which secures average annual revenue of US 100 million until 2010.

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