NCSP Chose Sberbank to Finance Primorsk Acquisition
OREANDA-NEWS. December 17, 2010. The Novorossiysk Commercial Sea Port Group (LSE: NCSP, RTS and MICEX: NMTP) hereby announces the results of the open tender to select a credit institution to finance the acquisition of Primorsk Trade Port LLC. As stated in the protocol of the tender the Sberbank of Russia was chosen to provide financing for the acquisition.
Commenting on this event CEO of NCSP Igor Vilinov said: "Tender results demonstrate market’s high credibility towards NCSP as a high quality borrower. Thanks to the above and the existing relationships with the leading credit institutions, the actual terms of the loan facility are substantially better than the original guidelines proposed for the tender, which will positively affect company’s credit profile in the future".
"Facility terms provide for commission-free loan prepayment after the first three years, thus opening wide opportunities to refinance and further reduce the cost of debt for the company. It’s worth mentioning that NCSP itself does not provide a security for the loan except for the suretyship (guarantee) of the acquired company – Primorsk Trade Port LLC", Vilinov added.
According to the tender offer submitted by the winner the loan facility in the amount of USD 1.95 billion with tenure of 7 years shall be provided on the following basic terms:
· floating interest rate of 3 months LIBOR plus 4.85% margin shall be applied during the first 3 years of the loan facility;
· fixed interest rate of 7.48% shall be applied during the remaining 4 years of the loan facility;
· arrangement fee shall be 0.6% of the loan amount;
· grace period for principal amount repayment shall be 36 calendar months from the date of the loan agreement;
· the principal amount shall be repaid quarterly in equal installments after the grace period;
· the loan facility shall be secured by suretyship (guarantee) of the acquired company – Primorsk Trade Port LLC, and pledge of 50.1% of NCSP ordinary shares held by Novoport Holding LTD;
· other conditions.
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