Russia's Severstal accepts $288.37 million of notes in tender offer

By Angela McDaniels

Tacoma, Wash., May 14 - ОАО Severstal announced the results of Steel Capital SA's modified Dutch auction tender offers for up to $500 million of two series of notes.

The company accepted for purchase a total of $288,369,000 principal amount of notes, including $72,242,000 principal amount of its $500 million 6¼% loan participation notes due 2016 and $216,127,000 principal amount of its $1 billion 6.7% loan participation notes due 2017.

The purchase price is $1,042.50 per $1,000 principal amount of 6¼% notes and $1,065.00 per $1,000 principal amount of 6.7% notes. Holders also will receive accrued interest.

The minimum purchase price per $1,000 principal amount was $1,022.50 for the 6¼% notes and $1,040.00 for the 6.7% notes.

The offer began April 29 and ended at 11 a.m. ET on May 13.

Severstal said it will continue to consider opportunities to repurchase its debt based on borrowing costs and the overall remaining tenor of its debt portfolio.

The dealer managers were Citigroup Global Markets Ltd. (+44 20 7986 8969 or liabilitymanagement.europe@citi.com) and Societe Generale (+44 20 7676 7579 or liability.management@sgcib.com). The tender agent was Citibank NA (+44 207 508 3867 or exchange.gats@citi.com).

Severstal is a steel and mining company based in Cherepovets, Russia. Steel Capital is a special-purpose vehicle established for the purpose of issuing of debt instruments for financing loans to Severstal.

© 2015 Prospect News.
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