Sberbank extends 50 bln rubles in credit for Metalloinvest
MOSCOW. Aug 8 (Interfax) - Sberbank of Russia has opened for Mikhailovsky Mining & Processing (MGOK) two three-year credit lines - one of 20 billion and the other of 30 billion rubles, said Alisher Usmanov's iron ore and steel holding OJSC Metalloinvest, of which the mining company is part.
The interest rate was not revealed.
"The opening of the credit line by Sberbank provides the opportunity to guarantee an additional source of liquidity with the goal of financial stability and steady company development in conditions of market fluctuation," Metalloinvest General Director Pavel Mitrofanov is quoted in the company's statement as saying.
Metalloinvest faces repayment of $600 million in debt in H1 2012 and $1 billion in 2013. Mitrofanov said that money flow from operations and remnants on accounts are sufficient for debt-servicing.
At the end of July of last year, Metalloinvest placed a debut issue of five-year Eurobonds totaling $750 million and carrying a coupon rate of 6.5% per annum. The Eurobonds mature July 21, 2016. The company raised a credit of $3.1 billion from a syndicate headed by BNP Paribas and Deutsche Bank AG last year.
The holding's net debt at end-2011 amounted to $4.43 billion, with a ratio to EBITDA (earnings before interest, taxes, depreciation, and amortization) of 1:1.
Metalloinvest's main production subsidiaries are MGOK, Lebedinsky Mining & Processing (LGOK) , Oskol Electrometallurgical Combine (OEMK) and Urals Steel. Billionaire Alisher Usmanov's Gallagher Holdings Limited owns 50% of Metalloinvest. Vladimir Skoch, father of State Duma deputy Andrei Skoch, holds 30% in the holding and VTB owns 20%, acquired from Vasily Anisimov in December 2011. Usmanov's partner in Gallagher is Farhad Moshiri with 10%.
VTB acquired its stake from Vasily Anisimov last December. Unofficial reports had it that the price tag was $2.5 billion (and that $1.9 billion of it went to paying off an earlier-taken credit). The state bank is now engaged in negotiations over the sale of that stake, and the most likely buyer is Metalloinvest itself.