Ferrexpo stake sold by RPGI in total return swap

Ferrexpo (FXPO LN) announced this week that RPG Industries sold a 12% stake in the company to JP Morgan, Citigroup and Morgan Stanley in equal proportions in a total return swap. A total return swap transaction has a typical duration of three years and provides for the right to receive Ferrexpo shares in settlement of the swap at maturity. Following the transaction, RPGI retains economic exposure to 25%-1 share of Ferrexpo. RPGI representatives will continue to serve as non-executive directors at Ferrexpo.