EuroChem to use Eurobond proceeds to refinance PXF
MOSCOW. June 16 (Interfax) - EuroChem, a major Russian fertilizer producer, plans to use the proceeds from its Eurobond offering to refinance pre-export financing (PXF) and does not anticipate any problems redeeming its 2017 Eurobonds, company CFO Andrei Ilyin said in a conference call for investors.
"The current deal will probably be used to refinance PXF. We need to redeem remaining Eurobonds in December 2017, but I don't think that we will have difficulties with this, considering the amount of our liquidity," Ilyin said.
EuroChem raised a five-year, $800 million PXF facility in September 2016, payments on which are due in 2019-2021.
EuroChem's deputy financial director, Alexander Gavrilov said the company has covered most refinancing for this year and debt due in the subsequent two years is also at a comfortable level.
As of the end of the first quarter of 2017, EuroChem had $966 million left to repay this year, including $325 million on a Eurobond issue, 60% of which the company redeemed in 2016. Meanwhile, the company had $973 million in cash and undrawn credit lines.
EuroChem began a road show on Thursday for a Eurobond offering of up to $600 million. The last time the company entered the Eurobond market was in October 2016, when it raised $500 million at 3.8% with 3.5-year bonds.
EuroChem's net covenant debt stood at $3 billion as of March 31, and the net debt to EBITDA ratio was 2.82.
