Severstal Announces Prices of 15 Billion Rouble Bond Issue
OREANDA-NEWS. February 18, 2010. Severstal announces the pricing of a 15 billion Rouble Bond issue (c. USD 452 million). The bonds will be listed on the Moscow Interbank Currency Exchange (MICEX) maturing in 2013 at a coupon rate of 9,75% per annum to be paid semi-annually. Previously the range announced was 10-10,5%.
The offering was c.3.7x oversubscribed with a book totaling 55 billion roubles from 130 local and international investors.
The two issues (5 and 10 billion roubles) were admitted to trading on MICEX on August 31, 2009, identification numbers: 4B02-02-00143-A and 4B02-04-00143-A. The Bond placement is anticipated on February 19, 2010, with secondary trading to commence on February 24, 2010. Both issues are expected to be included into the Lombard list of the Central Bank of Russia.
ZAO Citibank and ZAO Raiffeisenbank are acting as Lead Managers and Joint Bookrunners on Severstal Bonds offering. OAO Severstal plans to use the proceeds to refinance its short-term debt and balance its credit portfolio.
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