Evraz Issues New Shares Completing Bond and Equity Offerings
August 13, 2009 – Evraz Group S.A. ("Evraz") (LSE: EVR), in connection with its offering of 7.25% convertible bonds ("Bonds") due 2014 and global depositary receipts (“GDRs”) listed on the London Stock Exchange announced previously on July 8, 2009, today announces the issue of 7,333,333 shares in favour of Lanebrook, controlling shareholder of Evraz.
In order to facilitate the issuance of the Bonds, Morgan Stanley & Co. International plc (“Morgan Stanley”) has offered certain institutional investors the opportunity to borrow ordinary shares represented by GDRs in Evraz during the term of the Bonds by means of a stock loan of GDRs beneficially owned by Lanebrook (the "Loaned GDRs").
As was announced previously, Evraz issued new shares to Lanebrook against a contribution in kind consisting of the novation of Lanebrook’s claims under the stock loan to Evraz.
The valuation of Lanebrook’s contribution in kind by the Company’s Board of Directors was based on a valuation report by an independent appraiser (PricewaterhouseCoopers, Luxembourg) and, in accordance with Luxembourg law was subject to a report by an independent auditor (Ernst & Young Luxembourg).
Following the issue, the total number of shares constituting the issued share capital of Evraz is 145,957,121 of which up to 7,333,333 may be on loan from time to time in the form of GDRs to Morgan Stanley.