International rating agency Standard Poor s (SP) gave a rating of senior unsecured debt obligations in national currency at level B to the planned bond issue Sibmetinvest (part of Evraz Group) volume of 20 billion rubles under the safeguards of the parent company.
As reported in the agency press release, the rating placed on review with the possibility of reduction.
bond issue rating assigned to the expected level of reimbursement of debt after the default of 4, which reflects the average (30-50%) the level of reimbursement of debt to bondholders in the event of default.
purpose of issuing debt is to provide additional liquidity to support the refinancing of debt Evraz. Sibmetinvest - 100% subsidiary of Evraz, registered in Russia financial holding company, which does not conduct its own operations. Bondholders will depend on the servicing and repayment of debt by a guarantor.
In our opinion, the bondholders would be at a disadvantage compared with the holders of debt obligations issued by the production units of Evraz and the parent company. Nevertheless, we have equalized the ratings of bonds with credit rating Evraz, and assigns such same ratings of debt and the expected level of recovery of debt after the default, as well as issues of debt obligations of the other structures of the group. We believe that in case of default of the bond issue will be the same priority (pari passu) with the rest nesubordinirovannymi and unsecured obligations of the guarantor, recognizing that the guarantee is valid , - said in a statement S P.
bonds will be issued for a period of 10 years and will have a put option after five years. Coupon payment will depend on market conditions at the time of issuance. Issue does not provide for financial covenants.
As previously reported, Sibmetinvest October 9, opened a book of applications for 2 bonds for 20 billion rubles. Period for sending offers end October 20.
Provisional date set for the placement of securities on October 22. Sale of bonds scheduled for public subscription on the MICEX.
Bonds Sibmetinvesta Guarantor by Evraz Group SA The volume of the first and second issue of 10 billion rubles, the term of the bond - 10 years. Par value per bond is equal to 1 thousand rubles.
About 72% of Evraz Group owns the company Lanebrook. Its beneficiaries are the investment company Millhouse, manages assets of Roman Abramovich and his partners (50%), and Alexander Abramov and Alexander Frolov (together - 50 %).
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