By Marisa Wong
Los Angeles, Oct. 1 – PJSC Chelyabinsk Pipe Plant announced an inaugural placement of $300 million 4½% guaranteed notes due September 2024.
The notes were issued by Chelpipe Finance DAC, an Irish company founded for the sole purpose of issuing debt instruments and financing loans to ChelPipe Group.
Citi, Gazprombank, JPMorgan, Societe Generale and Renaissance acted as joint bookrunners for the issue. Sovcombank acted as co-manager. Citi, Gazprombank, JPMorgan and Societe Generale are also the global coordinators.
Good credit history of the company and favorable market conditions attracted a great number of investors within the framework of the five-day roadshow in Moscow, Zurich, Frankfurt, New York and London, according to a press release.
As a result, in the original price range of 4¾% to 5% the order book exceeded $1 billion, which made it possible to trim the rate twice and close the deal at 4½%, the company said.
The final order book lists around 100 names including investors from the United Kingdom (30%), Russia (28%), Сontinental Europe (23%), Asia (14%) and the United States (5%). Around 52% of the bonds issued were acquired by asset management companies, funds and insurance companies and 48% by banks and private banking, according to the release.
ChelPipe is planning to use proceeds from bond issue to pay back ruble loans to optimize its debenture portfolio.
Chelpipe is a Chelyabinsk, Russia-based manufacturer of tubular products for fuel and energy companies.
| Issuer: | Chelpipe Finance DAC (PJSC Chelyabinsk Pipe Plant)
|
| Issue: | Guaranteed notes
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| Amount: | $300 million
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| Maturity: | September 2024
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| Bookrunners: | Citi, Gazprombank, JPMorgan, Societe Generale and Renaissance
|
| Coupon: | 4½%
|
| Price talk: | 4¾%-5%
|
| Announcement date: | Oct. 1
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