November 7, 2006 - Evraz Group S.A. (LSE: EVR) announces that the group of the banks led by Natexis Banques Populaires has successfully closed the syndication of USD 525 million of financings (the "Transaction") originally arranged in May and July 2006 by Natexis Banques Populaires in favour of Evraz Group SA (or 'Evraz') and OAO Raspadskaya (or 'Raspadskaya'). The Transaction was syndicated among twelve international banks and was oversubscribed.
The Transaction is split between a USD 225 million 5-year Term Loan to the benefit of Evraz, to finance the purchase and the consolidation of coal assets under Raspadskaya in May 2006, and a USD 300 million Bridge Facility in favour of Raspadskaya.
The Mandated Lead Arrangers are Bank of Tokyo-Mitsubishi UFJ Ltd, BNP Paribas SA, Natexis Banques Populaires and Bank Natexis ZAO and Sumitomo Mitsui Banking Corporation, all acting also as Underwriters and Bookrunners. Natexis Banques Populaires and Bank Natexis ZAO are also acting as Coordinating Mandated Lead Arrangers and Natexis Banques Populaires as Facility Agent.
The one year Bridge Facility has a margin of 0.85% and is guaranteed by Evraz. The Term Loan has a margin of 1.25% and a 5-year tenor with amortisation following an 18-month grace period. It carries the guarantee of Mastercroft Ltd.
This Transaction is the first unsecured facility syndicated in the Russian steel sector. It is also one of the largest steel financings ever completed in the Russian Federation.
The bank syndicate includes 12 international banks: Calyon, Commerzbank (Eurasja) SAO, DZ Bank AG, ICICI Bank Eurasia LLC, ING Bank Eurasia (ZAO), KfW - IPEX BANK, Raiffeisenlandesbank Niederosterreich-Wien AG, San Paolo IMI Spa London Branch, Societe Generale, The Shangai Commercial and Savings Bank Ltd. Offshore Banking Branch, VTB Bank Europe plc and ZAO Banca Intesa.
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For further information:Evraz Group