NLMK might start placing up to 10 bln rubles in bonds this week
MOSCOW. Dec 13 (Interfax) - OJSC Novolipetsk Steel plans to open the bid book for investors for exchange bond issues BO-02 or BO-03 each worth 5 billion rubles some time this week, investment company Troika Dialog , the organizer of the placement along with Gazprombank, said in its materials.
These two issues might be placed at the same time, Troika Dialog said.
The parameters of the placement are as follows:
| Issue | BO-02 | BO-03 |
| Offer | 18 mths | None |
| Guidance for coupon, % | 8.5-8.75 | 8.75-9.25 |
| Yield guidance, | 8.68-8.94 | 8.94-9.46 |
NLMK's board of directors decided to place seven issues of three-year bonds each worth 50 billion rubles by open subscription in September 2009. These issues were registered for the MICEX in October of this year.
Exchange bonds BO-01, BO-02, BO-03 and BO-04 each come to 5 billion rubles while issues BO-05, BO-06 and B0-07 are each worth 10 billion rubles. The exchange bonds have six semiannual coupon payouts.
The company has already placed issues BO-01, BO-05, BO-06 and BO-07 worth a combined 35 billion rubles. The latter of these issues was placed in mid-November 2011 worth the first coupon at 8.95%. The issue had an option for an 18-month offer for preterm buyback. However, during book building, the issuer decided against announcing the offer.
The NLMK Group includes Russia-based assets Novolipetsk Steel Plant, iron ore miner Stoilensky GOK , coke producer Altai Koks, VIZ-Stal, LLC NLMK-sort and Maxi Group; and overseas NLMK USA, NLMK Europe. Vladimir Lisin controls 85.9% of shares via Fletcher Group Holdings and LKB-Invest. Management owns 2.8% of shares. The free float is 11.3%.