The Russian pipe producer TMK Group (TMK) has announced that it has repaid the remainder of $1.2 billion one-year term syndicated bridge facility, which was arranged on May 30, 2008, to finance the acquisition of the US tubular business of IPSCO. Previously, TMK partly refinanced the syndicated bridge after successfully issuing a $ 0.6 billion Eurobond in July 2008.
In addition, TMK has acquired the remaining 49 percent of US-based NS Group Inc. from Russian steel producer Evraz Group (Evraz) in accordance with a call / put option concluded between TMK and Evraz in March 2008. The resulting sale and purchase transaction has been completed at an exercise price of $508 million
As a result, TMK controls now 100 percent of NS Group, while the proceeds from the sale are to be kept by Evraz in reserve, in order to make interest payments on its debt in 2009.
Accordingly, in order to refinance the remainder of the syndicated bridge facility and to fulfill a call / put option, TMK raised a set of loans from Russian non-state owned bank Gazprombank in an aggregate amount of about $1.1 billion for a two and a half year term.