By Rebecca Melvin
New York, Sept. 10 – Steel Capital SA priced $800 million of 3.15% five-year loan participation notes (expected ratings: Baa2/BBB) for borrower PAO Severstal, according to a syndicate source.
The Rule 144A and Regulation S deal was priced at a spread over U.S. Treasuries of 167.8 basis points, and pricing came at the tight end of 3.15% to 3¼% guidance and tighter than initial price talk for a yield in the area of 3½%.
There is a 50 bps make-whole premium related to the call option.
Joint global coordinators and bookrunners of the senior notes are Citigroup, JPMorgan and Societe Generale, and joint bookrunners are ING, Sberbank CIB and VTB Capital.
The proceeds will be used for the purpose of financing a corresponding loan, which will be used primarily for general corporate purposes.
The order books for the deal were in excess of $2.2 billion, including joint lead manager-interest of $360 million.
Severstal is a steel and mining company based in Cherepovets, Russia.
| Issuer: | Steel Capital SA
|
| Borrower: | PAO Severstal
|
| Description: | Loan participation notes
|
| Amount: | $800 million
|
| Maturity: | Sept. 16, 2024
|
| Bookrunners: | Citigroup, JPMorgan, Societe Generale, ING, Sberbank CIB and VTB Capital
|
| Coupon: | 3.15%
|
| Price: | Par
|
| Yield: | 3.15%
|
| Spread: | Treasuries plus 167.8 bps
|
| Call: | 50 bps make-whole
|
| Trade date: | Sept. 9
|
| Settlement date: | Sept. 16
|
| Ratings: | Moody’s: Baa2
|
| Fitch: BBB
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 3.15% to 3¼% guidance; initial talk for yield in area of 3½%
|
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