15 Mar 2018 15:19

Metalloinvest net debt rises 28% to $4 bln in 2017, net debt/EBITDA falls to 1.9x

MOSCOW. March 15 (Interfax) - Metalloinvest's net debt totaled $4.056 billion at the end of 2017, increasing 28% compared to the end of 2016, the company said in a statement.

The net debt/EBITDA ratio fell to 1.9x from 2.5x on December 31, 2016 due to a 1.7-fold increase in EBITDA.

The company's gross debt increased 6.3% to $4.446 million of which $413 million was short-term debt. Short-term debt mainly comprises of ruble-denominated bonds for 10 billion rubles that were kept in the market in their full amount following a put-option in February 2018 and PXF payments that were refinanced in January 2018 for $240 million.

The increase in net debt was driven by a drop in cash and cash equivalent, totaling $390 million at the end of 2017 compared to $989 million on December 31, 2016. Moreover, as of the end of 2017, the company had undrawn committed credit lines in rubles and dollars for a total amount of approximately $810 million.

Metalloinvest raised a PXF facility in January, enabling it to refinance for this year. The company needs to repay $700 million in 2019, with all repayments in rubles, and $900 million rubles in both 2020 and 2021. In 2022-2024, the company has to return $1.8 billion to lenders and $300 million after 2024, the company said in a presentation.

Company management had earlier said that it considers leverage of net debt/EBITDA at 2x-2.5x a comfortable level.