Metalloinvest (the "Company"), a leading manufacturer and supplier of iron ore products and hot briquetted iron in the world market, one of the regional producers of high-quality steel, announces an early redemption of Eurobonds.
In order to optimize the borrowing portfolio, the Company made a decision to early repay the Eurobonds-2020 issue with a par value of USD 270.6 million. The securities were expected to be repaid in April next year.
Alexey Voronov, Chief Financial Officer of the Company, commented:
“As part of the Company's borrowing portfolio management strategy, we have decided to implement the make-whole option provided for in the Eurobond 2020 prospectus documentation and repay the balance of securities circulating in the market ahead of schedule, without waiting for April 2020. Today we sent a corresponding notification through an authorized agent to the owners of the securities. The source of funds will be a new loan PXF-2019, signed by us with international and Russian banks last week.
After we implemented a tender for Eurobonds-2020 in the “any and all” format in April 2017, there were $ 332.7 million in free circulation with a total issue volume of $ 1 billion. In 2019, the Company additionally redeemed securities with a par value of $ 62.1 million from the market. Thus, bonds with a par value of $ 270.6 million are currently in circulation. "
