Sibur-Russian Tyres to raise 8.6 bln ruble Gazprombank loan
MOSCOW. March 12 (Interfax) - Cordiant Assets Ltd plans to raise 8.56 billion rubles from Gazprombank .
Yaroslavl Tyre Plant, which is part of Sibur-Russian Tyres and is the loan guarantor, said in a press release that the company plans to raise a loan of 3.84 billion rubles and two credit lines of up to 4.72 billion rubles.
The loan funds will be raised for a 5-year term at 10.25% per annum.
Cordiant Assets Ltd is one of the structures participating in the deal where Sibur-Russian Tyres management is buying the company from Sibur, Sibur-Russian Tyres told Interfax.
The loan agreements envisage various covenants. Sibur-Russian Tyres ratio of debt to EBITDA should not exceed 8.5 in mid-2012, and should drop to 4 by mid-2016. In addition, the bank should have one seat on the Sibur-Russian Tyres and Cordiant Assets Ltd boards with the right to veto issues requiring bank approval according to the loan agreement.
The money is being raised to finance and refinance spending aimed at acquiring 50% of CJSC Cordiant-Vostok and to refinance Sibur-Russian Tyres current debt to Sibur and UnicreditBank.
Sibur in late December concluded a deal to sell Sibur-Russian Tyres to a group of investors, which include the company's management and its former general director Vadim Gurinov. The Sibur-Russian Tyres affiliated parties list shows that the sole shareholder from December 29 2011 was CJSC Cordiant.
Sibur-Russian Tyres includes Yaroslavl Tyre Plant, Voltair-Prom , Omskshina , Cordiant-Vostok and Uralshina.