By Rebecca Melvin
New York, June 7 – Russia’s PJSC Magnitogorsk Iron and Steel Works (MMK) priced $500 million of 4 3/8% five-year notes (expected ratings: Baa2//BBB) at par for a yield spread of 250.4 basis points over U.S. Treasuries, according to a syndicate source on Thursday.
Pricing was tightened from revised guidance for a yield in the area of 4½%, following initial guidance in the 4 5/8% area, and initial talk in the 4¾% area.
Global order books at the time of revised guidance were in excess of $1.8 billion.
Citigroup, JPMorgan and Societe Generale are joint lead managers and bookrunners for the Rule 144A and Regulation S deal.
MMK International DAC is the issuer of the notes.
The company is a steel producer based in Magnitogorsk, Russia.
| Issuer: | MMK International DAC
|
| Guarantor: | PJSC Magnitorgorsk Iron and Steel Works
|
| Amount: | $500 million
|
| Issue: | Senior notes
|
| Maturity: | June 13, 2024
|
| Bookrunners: | Citigroup, JPMorgan and Societe Generale
|
| Coupon: | 4 3/8%
|
| Price: | Par
|
| Yield: | 4 3/8%
|
| Spread: | Treasuries plus 250.4 bps
|
| Pricing date: | June 5
|
| Settlement date: | June 13
|
| Ratings: | Moody's: Baa2
|
| Fitch: BBB
|
| Distribution: | Rule 144A and Regulation S
|
| Talk: | Revised guidance for yield in 4½% area; initial guidance in 4 5/8% area; and initial talk in 4¾% area
|
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