Nordgold refinances $280 mln credit with Eurobond proceeds
MOSCOW. May 16 (Interfax) - Gold-mining company Nordgold has refinanced a half-year bridge credit of $280 million organized by Sberbank CIB, Natixis, and Societe Generale, with funds received from Eurobonds placed early this month, the company said.
The company obtained the credit for financing the purchase of shares from minority holders in High River Gold Mines, which it controls.
On May 7, Nordgold placed $500 million worth of five-year Eurobonds at 6.375%. The placement organizers were Citigroup, Goldman Sachs International, Jefferies, Natixis, Sberbank CIB, and Societe Generale.
A Nordgold representative said that the proceeds would be used to pay off the bridge credit before the end of this month, and also for general corporate aims including the partial payment of debt under a 2012 credit agreement secured with Sberbank of Russia .
The terms of Nordgold's offer to the High River minority holders were announced last July and running to December 8, stipulated that the company would continue to swap for shares 0.285 of a Nordgold GDR or pay 1.4 Canadian dollars. The buyback process was wrapped up in early March this year.
Nordgold is the former gold mining subdivision of OJSC Severstal's resource division, and was split off in January of last year. Its GDRs trade on the London Stock Exchange. Nordgold's main beneficiary, with an 85.4% stake, is Alexei Mordashov. The free float is around 15%.
Nordgold has nine projects in the active phase in four countries, Russia, Kazakhstan, Guinea, and Burkina Faso; and a number of others in the development and exploration stages.
