EuroChem to open bid book on second bond issue worth 5 bln rubles on Fri
MOSCOW. June 24 (Interfax) - EuroChem Chemical Company will open the bid book for purchasing the second series bond issue worth 5 billion at 10:00 am Moscow time, June 25, the company said in a statement.
The applications will be accepted until 5:00 pm, July 2. Raiffeisenbank is the placement's organizer.
The coupon guidance for the bonds comes to 9.25%-9.75%. The issue has a five-year offer for preterm buyback.
The offer for investors to acquire bonds is open until July 6, 2010 inclusive.
The bonds will mature over eight years.
In April 2010, EuroChem collected applications for the purchase of its first series bond issues worth 10 billion rubles. However, the company was forced to decide against a placement owing to the sharply worsening situation as Greece's debt problems sullied the market mood.
EuroChem also has a third series bond issue also worth 5 billion rubles, which has been registered but has not been placed.
OJSC Novomoskovsky Shareholder Company Azot and OJSC Kovdorsky GOK are guarantors on bond series one through three.
According to a memorandum for the placement, EuroChem plans to earmark 70% of the raised funds for financing its investment program while 30% of these funds will go to refinancing current debts.
EuroChem should pay off $104.7 million in debt per quarter in the second, third and fourth quarter of 2010, as well as $479 million in 2011 and $638.8 million.
EuroChem is one of Russia's ten biggest agrichemicals firms by capacity. It includes Nevinnomyssky Azot , Novomoskovsky Azot, Phosphorit, EuroChem-BMU and Kovdorsky GOK in Russia and Lifosa in Lithuania.
Andrei Melnichenko, the chairman of EuroChem's board of directors, owns 95% of EuroChem, and Dmitry Strezhnev, the general director, owns 5%.