PJSC Magnitogorsk Iron and Steel Works: MMK placed US$500 mm Eurobonds

PJSC Magnitogorsk Iron and Steel Works (MMK) 
PJSC Magnitogorsk Iron and Steel Works: MMK placed US$500 mm Eurobonds 
 
14-Jun-2019 / 10:00 CET/CEST 
Dissemination of a Regulatory Announcement, transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
 
            MMK placed US$500 mm Eurobonds 
 
                         14-06-2019, Magnitogorsk 
 
         Magnitogorsk Iron and Steel Works ("MMK"), one of the largest steel 
        suppliers in Russia rated Baa2 (Moody's) / BBB (Fitch) / BBB- (S&P), 
        returned to the international market after more than 15 years with a 
successful placement of 5-year US$500mm Eurobonds with an annual coupon rate 
 of 4.375% payable semi-annually. The proceeds of the issue will be used for 
                         general corporate purposes. 
 
    The issue was oversubscribed by over 4.5 times with the total order book 
  exceeding US$2.2 bn at the peak. The final book comprised a broad range of 
   international investors, with 31%, 29% and 17% of allocations coming from 
 US, Europe and UK, respectively, with the remaining portion attributable to 
                         other regions. 
 
 Citi, J.P. Morgan and Société Générale acted as the Joint Lead Managers and 
   Joint Bookrunners for the new issue. The US$500,000,000 4.375% Guaranteed 
     Notes due in June 2024 were issued by MMK International Capital DAC, an 
   Irish company formed for the sole purpose of issuing debt instruments and 
                         financing loans to MMK. 
 
      Pavel Shilyaev, Chief Executive Officer of MMK commented: "We are very 
pleased with the successful placement of the company's Eurobonds. The 4.375% 
 coupon is the lowest USD coupon on Russian/CIS Corporate issuance in almost 
    1.5 years and represents 0 bps new issue premium to the implied Russian 
 Metals & Mining yield curve of the same rating bucket. The issue was backed 
by a very high level of interest from fixed income investors globally and we 
      believe that the bond has successfully and firmly re-established MMK's 
                         presence in the international bond market". 
 
                         About MMK 
 
MMK is one of the world's largest steel producers and leading Russian metals 
               companies. The company's operations in Russia include a large 
  steel-producing complex encompassing the entire production chain, from the 
 preparation of iron ore to downstream processing of rolled steel. MMK turns 
             out a broad range of steel products with a substantial share of 
high-value-added products. In 2018, the company produced 12.7 million tonnes 
   of crude steel and 11. 7 million tonnes of commercial steel products. MMK 
        Group had sales in 2018 of US$ 8,214 million and EBITDA of US$ 2,418 
                         million. 
 
Investor contacts: 
 
Andrey Serov 
 
tel.: [phone] 
 
E-mail: [e-mail] 
 
Media contacts: 
 
Dmitry Kuchumov            Dmitry Bulin 
 
tel.: [phone]   tel.: [phone] 
 
E-mail: [e-mail] E-mail: [e-mail] 
 
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ISIN:          US5591892048 
Category Code: IOD 
TIDM:          MMK 
LEI Code:      253400XSJ4C01YMCXG44 
Sequence No.:  10186 
EQS News ID:   824723 
 
End of Announcement EQS News Service 
 
 

(END) Dow Jones Newswires

June 14, 2019 04:01 ET (08:01 GMT)