Metinvest repays two loans worth USD 135 mln

Metinvest announced on Jan. 30 that it repaid a two-year, pre-export facility of USD 75 mln issued by Rabobank International, as well as a USD 40 mln, three-year loan from Amsterdam Trade Bank. Metinvest redeemed the first loan on schedule and the second one was two months ahead of schedule.

Roman Topolyuk: The repayment seems to have had a minor impact on the total company’s indebtedness (of around USD 3.9 bln, we estimate as of end-2012) as well as on average cost of debt, even though the repaid loans were cheaper (about 4.2%) than Metinvest’s recently attracted loans (5.25% over LIBOR). We are keeping our estimate of Metinvest’s total debt-to-EBITDA ratio unchanged at 2.0x on 2012E EBITDA vs. a Eurobonds covenant of 3.0x.