Evraz Group agrees covenant changes with bondholders
MOSCOW. Dec 7 (Interfax) -Evraz Group has reached agreement with holders of its Evraz 2013, Evraz 2015, and Evraz 2018 Eurobonds regarding changes to the associated covenants, the Russian steel major said in a statement.
The parties agreed that holders of these Eurobond issues change covenants attached to the notes, namely the condition that the net debt/EBITDA ratio is limited to 3:1 will not apply to the 2015 issue at the end of each accounting period (June 30 and December 31 of each year, beginning on June 30, 2010). The ratio eases to 6.5:1 per period ending on those dates in 2010, to 5.5:1 or less for the period ending June 30, 2011, and to 3.5:1 for the period ending December 31, 2001 and for subsequent periods.
For its 2013, 2015 and 2018 notes, Evraz Group and its bond-holders agreed that Evraz and its subsidiary companies are not to incur debt in the event the leverage ratio is 3:1 or lower.
Regarding the 2015 bonds, cash collateralized in an amount commensurate with the size of debt incurred to a bank or trust company is to be excluded from the definition of 'indebtedness'.
J.P. Morgan Securities Ltd. acted as global coordinator and joint solicitation agent, Barclays Bank PLC, Deutsche Bank AG, and The Royal Bank of Scotland plc as joint solicitation agents on the agreement, and the The Bank of New York Mellon, London Branch as tabulation agent. The company Lazard & Co., Limited acted as financial consultant.