Severstal placing $750 mln in 10-yr Eurobonds at 5.9% - source
MOSCOW. Oct 4 (Interfax) - Severstal is placing $750 million in ten-year Eurobonds at 5.9% pa, a financial market source told Interfax.
Pricing will take place later on Thursday.
Yield guidance for Severstal's Eurobonds was previously lowered from 6.125% to 5.9%-6%. The bonds mature on October 16, 2022.
Citigroup, ING, J.P. Morgan, VTB Capital and Societe Generale are the organizers of the placement, with SPV company Steel Capital acting as the issuer.
On September 24, Severstal wrapped up the placement of five-year convertible bonds to the tune of $475 million with a coupon of 1% per annum. The conversion price was $19.08 (a premium of 45% to the pricing guidance of $13.16). Bonds issued by Holdgrove Limited and guaranteed by Severstal are convertible into company GDR (global depositary receipts) representing one ordinary share.
In June, the Severstal board of directors decided on the placement of four issues of exchange bonds for a total of 50 billion rubles, as well as three issues of classic bonds totaling 30 billion rubles. Severstal currently has B0-01 (15 billion rubles), BO-02 (10 billion rubles), and BO-04 (5 billion rubles) exchange bond series in circulation.
Severstal is a vertically integrated steel company with assets in Russia, North America, Europe, Africa and Ukraine. Its chief beneficiary is its general director, Alexei Mordashov, with 81.4%.
