Russia’s Novolipetsk takes in tenders for $571.03 million of notes

New York, June 9 – Novolipetsk Steel (NLMK) said that its Steel Funding Ltd. subsidiary received and accepted tenders for a total of $571.03 million of its 4.45% loan participation notes due 2018 and 4.95% loan participation notes due 2019.

Specifically, holders tendered $311,426,000 of the $707,585,000 outstanding 4.45% notes and $259,605,000 of the $470,714,000 outstanding 4.95% notes, according to an announcement from the company.

Following settlement, $396,159,000 of the 4.45% notes and $211,109,000 million of the 4.95% notes will remain outstanding.

Novolipetsk Steel said it expects the financing condition for the offer to be satisfied and for settlement to take place on June 17.

Funding for the offering will come from the sale of $700 million of new 4.5% loan participation notes due 2023.

The issuer said that the transactions will extend the maturity date of its debt.

Novolipetsk Steel announced the tender on May 31, saying it would pay for each $1,000 principal amount a purchase price of $1,036.25 for the 4.45% notes and $1,045.00 for the 4.95% notes.

The company also will pay accrued interest to but excluding the settlement date.

The offer ended at 8 a.m. ET on June 8.

Steel Funding is a special purpose vehicle established for the purpose of issuing debt instruments for financing loans to NLMK.

The offers will be funded using proceeds of a new series of loan participation notes and the tender is contingent on the company obtaining the financing by the settlement date.

Deutsche Bank AG, London Branch (+44 20 7545 8011 or liability.management@db.com), ING Bank NV, London Branch (+44 20 7767 5107 or liability.management@uk.ing.com), J.P. Morgan Securities plc (+44 20 7134 2468 or em_europe_lm@jpmorgan.com) and Societe Generale (+44 20 7676 7579 or liability.management@sgcib.com) are the joint dealer managers.

D.F. King Ltd. (+44 20 7920 9700, 212 269-5550, 800 820-2412, +852 3953 7230, nlmk@dfkingltd.com or sites.dfkingltd.com/nlmk) is the information and tender agent.

NLMK is a steel company based in Lipetsk, Russia.

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