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OJSC MAGNITOGORSK IRON AND STEEL WORKS (FRA:US559189) PJSC Magnitogorsk Iron and Steel Works: MMK placed US$500 mm Eurobonds

Directive transparence : information réglementée

14/06/2019 10:00

PJSC Magnitogorsk Iron and Steel Works (MMK)
PJSC Magnitogorsk Iron and Steel Works: MMK placed US$500 mm Eurobonds

14-Jun-2019 / 10:00 CET/CEST
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.


 

 

 

MMK placed US$500 mm Eurobonds

14-06-2019, Magnitogorsk

Magnitogorsk Iron and Steel Works ("MMK"), one of the largest steel suppliers in Russia rated Baa2 (Moody's) / BBB (Fitch) / BBB- (S&P), returned to the international market after more than 15 years with a successful placement of 5-year US$500mm Eurobonds with an annual coupon rate of 4.375% payable semi-annually. The proceeds of the issue will be used for general corporate purposes.

The issue was oversubscribed by over 4.5 times with the total order book exceeding US$2.2 bn at the peak. The final book comprised a broad range of international investors, with 31%, 29% and 17% of allocations coming from US, Europe and UK, respectively, with the remaining portion attributable to other regions.

Citi, J.P. Morgan and Société Générale acted as the Joint Lead Managers and Joint Bookrunners for the new issue. The US$500,000,000 4.375% Guaranteed Notes due in June 2024 were issued by MMK International Capital DAC, an Irish company formed for the sole purpose of issuing debt instruments and financing loans to MMK.

Pavel Shilyaev, Chief Executive Officer of MMK commented: "We are very pleased with the successful placement of the company's Eurobonds. The 4.375% coupon is the lowest USD coupon on Russian/CIS Corporate issuance in almost 1.5 years and represents ~0 bps new issue premium to the implied Russian Metals & Mining yield curve of the same rating bucket. The issue was backed by a very high level of interest from fixed income investors globally and we believe that the bond has successfully and firmly re-established MMK's presence in the international bond market".

About MMK

MMK is one of the world's largest steel producers and leading Russian metals companies. The company's operations in Russia include a large steel-producing complex encompassing the entire production chain, from the preparation of iron ore to downstream processing of rolled steel. MMK turns out a broad range of steel products with a substantial share of high-value-added products. In 2018, the company produced 12.7 million tonnes of crude steel and 11.7 million tonnes of commercial steel products. MMK Group had sales in 2018 of US$ 8,214 million and EBITDA of US$ 2,418 million.

 

 

Investor contacts:

Andrey Serov

tel.: +7 (3519) 24-52-97

E-mail: serov.ae@mmk.ru

 

Media contacts:

Dmitry Kuchumov

tel.: +7 (499) 238-26-13

E-mail: kuchumov.do@mmk.ru

Dmitry Bulin

tel.: +7 (499) 238-26-13

E-mail: bulin.dn@mmk.ru

 

 

 

 

 

 

 

Disclaimer

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities in the United States or any other jurisdiction to any person to whom it is unlawful to make such offer or solicitation in such jurisdiction. The securities referred to in this press release have not been and will not be registered under the Securities Act and, subject to certain exceptions, may not be offered or sold within the United States. The securities referred to in this press release are being offered and sold outside the United States in reliance on Regulation S under the Securities Act ("Regulation S") and within the United States to "qualified institutional buyers" (as defined in Rule 144A) ("QIBs").

This press release may only be communicated, or caused to be communicated, to persons in the United Kingdom in circumstances where section 21(1) of the FSMA does not apply and may be distributed in the United Kingdom only to persons who (i) have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the "Order") or (ii) are persons falling within Article 49(2)(a) to (d) ("high net worth companies, unincorporated associations etc.") of the Order (all such persons together being referred to as "Relevant Persons"). In the United Kingdom, this press release is directed only at Relevant Persons and must not be acted on or relied on by persons who are not Relevant Persons.

In member states of the European Economic Area, this press release is directed only at persons who are "qualified investors" within the meaning of Article 2(1)(e) of Directive 2003/71/EC (the "Prospectus Directive") ("Qualified Investors"). This press release is an advertisement for the purposes of applicable measures implementing the Prospectus Directive.

This press release or information contained therein is not an offer, or an invitation to make offers, sell, purchase, exchange or transfer any securities in the Russian Federation to or for the benefit of any Russian person or entity and does not constitute an advertisement of offering of any securities in the Russian Federation within the meaning of Russian securities laws. Information contained in this press release is not intended for any persons in the Russian Federation who are not "qualified investors" within the meaning of Article 51.2 of the Federal Law no. 39-FZ "On the securities market" dated 22 April 1996, as amended ("Russian QIs") and must not be distributed or circulated into Russia or made available in Russia to any persons who are not Russian QIs, unless and to the extent they are otherwise permitted to access such information under Russian law.

 



ISIN: US5591892048
Category Code: IOD
TIDM: MMK
LEI Code: 253400XSJ4C01YMCXG44
Sequence No.: 10186
EQS News ID: 824723

 
End of Announcement EQS News Service

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