Metinvest raises $850 mln syndicated loan
KYIV. Aug 11 (Interfax) - Metinvest B.V., the parent company of Ukrainian vertically integrated international mining and metals group Metinvest, has raised a five-year syndicated amortizing loan of $850 million.
The coordinator is Deutsche Bank AG, the group said in a statement.
An agreement has been signed with five mandated lead arrangers and bookrunners: Deutsche Bank AG, ING Bank N.V., Natixis, UniCredit Bank AG, WestLB AG, and mandated lead arranger BNP Paribas.
The bookrunners are preparing to announce syndication for a wider circle of banks in September.
The loan, with a grace period of 24 months from the signing date, will be used to refinance Metinvest's existing high interest bearing loans, primarily the $700 million three-year loan secured in 2010, reducing the interest charge from Libor + 5.5% to the lower rate of Libor + 3.0% per annum.
This is the fourth loan raised by Metinvest in 2011, following earlier loan facilities arranged in February 2011: $100 million from UniCredit, $75 million from Rabobank Group and $175 million standby credit line from Sberbank of Russia.
Rinat Akhmetov's System Capital Management (SCM) owns 71.25% of Metinvest. Smart Holding owns 23.75%.
Metinvest owns steel producers Azovstal, Ilich and Enakieve Iron & Steel Works, Khartsyzsk Pipe Works, Avdiyivka Coke Chemicals Works, Krasnodon Coal and iron ore producers Northern, Central and Inhulets mining and beneficiation plants in Ukraine.
Metinvest owns 100% of United Coal Company (UCC) in the United States. In Europe, Metinvest is represented by Italian re-rolling companies Ferriera Valsider and Metinvest Trametal, British carbon steel plate producer Spartan UK and Bulgarian long products manufacturer Promet Steel.
Metinvest boosted consolidated net profit 30.8% in 2010 to $437 million and revenue 55.3% to $9.358 billion.