Metinvest To Get a USD 1.5 bln Syndicated Loan
7 June 2008
According to management, Metinvest will attract a USD 1.5 bln syndicated loan to refinance existing debt, which is 400-500 bps more expensive than a syndicated facility. The company’s CFO said it could potentially increase its debt from the current USD 800-850 mln to USD 7-8 bln. Should Metinvest require more financing for development, it might hold an IPO. It was also disclosed that the company plans to invest around USD 700 mln in 2007 and up to USD 4 bln over the next 5 years. More than half of that will go into the reconstruction of Azovstal (AZST: U/R) and Enakievo Steel (ENMZ: U/R); around USD 600 mln will be invested into the development of coal mine Krasnodonugol. Yesterday, a local daily cited an undisclosed investment bank saying that Azovstal (AZST: U/R) intends to buy back its USD 175 mln loan participation notes in February next year.
