Integra Group Completes USВ 250 Million Loan Deal with EBRD
OREANDA-NEWS. On 24 February 2009 Integra Group (LSE:INTE), a leading Russian independent provider of onshore oilfield services and manufacturer of oilfield services equipment, announceв that it has finalized a USD 250 million financing deal with the European Bank for Reconstruction and Development (“EBRD”) and a group of commercial banks. Multiple tranches of this loan amortize over three and five years. First drawdown is anticipated to occur on February 25th, 2009.
Pursuant to the amended agreement, EBRD is providing USD \\$75 million of a multiple tranche financing, while USD 175 million is being co-financed by commercial lenders, including BNP Paribas, ING, VTB Deutschland, Royal Bank of Scotland, Alfa Bank, Commerzbank, Morgan Stanley and Aljba Alliance pursuant to a recently signed participation agreement. The initial amount of the loan of up to USD 300 million was reduced due to a decrease in the US dollar value of the project costs because of significant depreciation of the Russian Ruble. The loan is secured by pledges of shares of the main operating subsidiaries and selected fixed assets as well as by a conditional assignment of certain contract receivables.
The proceeds will be used to refinance most of the Group’s short-term debt as well as to fund certain capital expenditures and the agreed Environment Action Plan (EAP), more specifically:
• US\\\\$135 million settlement of the bridge loan with ABN AMRO and ING Bank N.V;
• RUB 2 billion (USD 57.1 million) settlement of 1st tranche of Russian Ruble bonds;
• USD 25.1 million settlement of other short term bank debt;
• USD 26.5 million capex financing (including Environment Action Plan); and
• USD 6.3 million in fees.
Following the disbursement of the loan and subsequent refinancing of short term liabilities,
Integra Group will have the following debt outstanding (excluding the loan from EBRD):
• RUB 600 million (USD 16.7 million) loan from Sberbank maturing in October, 2009;
• RUB 115 million (USD 3.2 million) loan from Sberbank with final maturity in April, 2011; and
• RUB 3 billion (USD 83.5 million) 2nd tranche of Russian Ruble bonds, maturing in 2011 with a one-time put option in December, 2009.
Under the current financing plan, the Company does not anticipate any additional significant external borrowings and intends to service and settle existing borrowings from its operating cash flow.
Commenting on the announcement, Dmitry Avdeev, Integra’s CFO, said:
“This landmark transaction refinances significant investments that Integra had made in the past and provides a comprehensive long term capital solution for its continued development. The strong support from existing and new lenders serves as evidence of the strength of our business model in the current challenging market environment.”
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