Severstal could buy back up to $600 mln in 2016-2017 Eurobonds
MOSCOW. Jan 14 (Interfax) - Severstal could in total buy back up to $600 million in Eurobonds maturing in 2016 and 2017, the steel giant said in a statement.
Severstal reserves the right to lower or raise the total volume of bonds for purchase.
The company has offered to buy 2016 notes at $955 each and 2017 notes at $918.75, in both cases less than face value of $1,000.
Bonds can be tendered for repurchases by January 21. The results of the offer should be announced on January 22.
Yield on the 2016 notes is 6.25% and that on the 2017 notes is 6.7%.
Severstal is buying the notes via the Luxembourg-registered Steel Capital S.A.
Severstal said the buyback, which it was funding from available cash, would enable it to reduce its overall dollar-denominated debt and was being carried out as part of its debt management program.
Severstal bought back a total of $280 million in 2016-2017 notes in May last year.
The company's net debt was $775 million at end Q3 2014, 7.4% less than at end Q2 2014. Net debt/EBITDA is 0.4x.