Severstal launches $800 million five-year notes set to yield 3.15%

By Rebecca Melvin

New York, Sept. 9 – Steel Capital SA launched on Monday an offering of $800 million of five-year loan participation notes (expected ratings: Baa2/BBB-/BBB), which are guaranteed by PAO Severstal and set to yield 3.15%, according to a syndicate source.

Pricing of the Rule 144A and Regulation S deal came at the tight end of 3.15% to 3¼% guidance. Initial price talk was for a yield in the area of 3½%.

Joint global coordinators and bookrunners of the senior unsecured notes are Citigroup, JPMorgan and Societe Generale, and joint bookrunners are ING, Sberbank CIB and VTB Capital.

The order books were in excess of $2.2 billion, including joint lead manager-interest of $360 million. The deal is expected to settle on Sept. 16.

Severstal is a steel and mining company based in Cherepovets, Russia.

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