NLMK closes its EUR 500 m 5-year Eurobond offeringSource: RNS
02 June 2021
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NLMK closes its EUR 500 million 5-year Eurobond offering
NLMK (LSE: NLMK, MOEX: NLMK), a global steel company, today announces the closing of its EUR 500 million 5-year Eurobond placement with an annual coupon rate of 1.45%. Interest payments on the Eurobonds are payable annually.
The proceeds from the issue will be used to finance the purchase of existing Notes due 2023 and 2024 in accordance with the terms and conditions of the Tender Offer announced on 17 May 2021 (settlement is expected on 4 June 2021) and/or for NLMK's general corporate purposes.
J.P. Morgan, BofA Securities and Société Générale acted as the Joint Lead Managers and Joint Bookrunners for the new issue. The 1.45% Loan Participation Notes due 2026 were issued by Steel Funding D.A.C., an Irish company formed for the purpose of issuing debt instruments for financing loans to NLMK.
Shamil Kurmashov, Chief Financial Officer of NLMK, commented: "We are pleased with the results of our inaugural EUR-denominated Eurobond issue, with books more than 3.0x oversubscribed at peak. We were able to achieve the lowest coupon ever by a Russian privately-owned corporate issuer, a testimony of the strength of NLMK's investor story."
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About NLMK Group
NLMK Group is the largest steelmaker in Russia and one of the most efficient in the world.
NLMK Group's steel products are used in various industries, from construction and machine building to the manufacturing of power-generation equipment and offshore wind turbines.
NLMK operates production facilities in Russia, Europe, and the United States. The Company's steel production capacity exceeds 18 million tonnes per year.
NLMK's ordinary shares with a 20.7% free-float are traded on the Moscow Stock Exchange (ticker "NLMK") and its global depositary shares are traded on the London Stock Exchange (ticker "NLMK:LI"). The share capital of the Company is divided into 5,993,227,240 shares with a par value of RUB1.
This announcement is not an offer of securities for sale in the United States. The Notes have not been and will not be registered under the US Securities Act of 1933, as amended (the "Securities Act"), or with any securities regulatory authority of any state or other jurisdiction of the United States. Consequently, the Notes may not be offered, sold, resold, transferred, delivered or distributed, directly or indirectly, into or within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable securities laws of any state or other jurisdiction of the United States. No public offering of the Notes is being made in the United States.
This document does not constitute an invitation or inducement to engage in investment activity within the meaning of the UK Financial Services and Markets Act 2000. This announcement is only being distributed to and is only directed at (1) persons who are outside the United Kingdom, (2) to investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or (3) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as "Relevant Persons"). The Notes to which this announcement relates are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such Notes will be engaged in only with, Relevant Persons. Any person who is not a Relevant Person should not act or rely on this announcement or any of its contents. Persons distributing this announcement must satisfy themselves that it is lawful to do so.
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