Kemerovo's Koks places Eurobonds for $136 mln as part of restructuring issue for $151 mln
KEMEROVO. July 3 (Interfax) - OJSC Koks (Kemerovo, parent company of Industrial-Metallurgical Holding) in the framework of restructuring an issue of Eurobonds for $151 million, placed new bonds for $136 million.
According to the company's materials, on Thursday a borrowing agreement was closed between Koks and Koks Finance Limited, the issuer of the Eurobonds, for $136.436 million. According to the deal's conditions, the funds were provided until December 28, 2018. The yield of the Eurobonds is 10.75%.
Guarantees for the deal, which belong to Industrial-Metallurgical Holding are OJSC KMAruda Combine , LLC Tikhov Mine and LLC Butovskaya Mine, and an additional guarantee is OJSC Tulachermet, which also belongs to the holding.
In the middle of June Koks sent Eurobond holders for a sum of $350 million a proposal on the exchange of the notes for bonds with a higher rate. The yield of the old issue was 7.75% and the date of repayment was 2016.
The company proposed that the holders of these Eurobonds exchange them for new ones with a repayment deadline in December 2018 and the coupon rate for the bonds would be raised to 10.75%.
Eurobond holders presented bonds for redemption for a told sum of $150.8 million, Koks said on June 29.
Industrial Metallurgical Holding, previously called the Koks Group, is a leading producer of merchant coke in Russia that specializes in mining and processing coking coal and iron ore and in the production of pig iron and coke.
