The Russian mining and steel producer Evraz Group has announced that it has signed a $950 million structured credit facility, maturing in 2015 and secured with assignment of sales proceeds under certain export contracts.
Accordingly, the proceeds of the facility will be used to fully prepay the outstanding amount of Evraz Group's existing syndicated facility, which matures in 2012.
The entry into the facility follows the completion of a five-year Ruble 15 billion (about $484 million) bond issue which took place in early November. As a result of these refinancing activities, Evraz has lengthened the average maturity of its indebtedness and has no remaining significant debt repayments in 2011 or 2012.
The entry into the facility, twice oversubscribed, was arranged and fully underwritten by a group of 14 international banks.
Interest under the facility is payable at a rate equal to LIBOR plus a margin calculated by reference to Evraz's net leverage ratio, currently set at 2.8 percent.