Russia’s Novolipetsk wraps, prices tender offer for 4.45%, 4.95% notes

By Susanna Moon

Chicago, July 16 – Steel Funding Ltd. said it accepted tenders for $92,415,000 of its $800 million outstanding 4.45% loan participation notes due 2018 and $92,415,000 of its $500 million 4.95% loan participation notes due 2019.

After settlement, the outstanding amount will be $707,585,000 of the 4.45% notes and $470,714,000 of the 4.95% notes, according to a company press release.

The company said it accepted all notes tendered at or below the purchase price without proration. Those submitted under competitive offers at prices above the cutoff will not be accepted under the offers.

The purchase price for each $1,000 principal amount was set at $1,015 for the 4.45% notes and $1,010 for the 4.95% notes.

The minimum purchase price per $1,000 principal amount was $1,002.50 for the 4.45% notes and par for the 4.95% notes, as previously noted.

The modified Dutch auction tender offer ended at 11 a.m. ET on July 15, with settlement set for July 18.

When the offer began July 8, the company said it was tendering for up to $100 million of the two series of notes.

Steel Funding is a special-purpose financing vehicle of Novolipetsk Steel OJSC, a steel company based in Lipetsk, Russia.

Steel Funding previously said the aim of the offer was to allow Novolipetsk to reduce its debt level. All notes purchased under the offer will be canceled, and a corresponding principal amount of the relevant loan to Novolipetsk will be deemed repaid.

The dealer manager is J.P. Morgan Securities plc (44 20 7134-3414 or emea_lm@jpmorgan.com). The tender agent is D.F. King (Europe) (44 20 7920-9700 or nlmk@king-worldwide.com).

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