Metinvest B. V. (the Netherlands), the parent company of an international vertically integrated mountain-metallurgical group “Metinvest”, after successful completion of the restructuring of its debt in March 2017 agreed on the Fund raising for one of its key businesses – Ingulets GOK (InGOK, Krivoy Rog, Dnepropetrovsk region).
As reported in a press release on Friday evening, in the framework of a financial leasing deal with “Zeppelin Ukraine LLC” group agreed on the delivery of eight dump trucks Caterpillar 785C for the Enterprise – one of the largest producers of iron ore in Ukraine.
It is noted that the total cost of equipment is about $17 million, and the fiscal division of the American manufacturer of construction and mining equipment, LLC “caterpillar financial Ukraine” provides for the funding of this transaction for five years.
Supply of dump trucks is expected from September 2017.
“The group “Metinvest” after a long break returns to global capital markets.. . Now, when all the conditions (restructuring) agreed with our creditors, we return to the investment activities to continue to Fund our key projects”, – said General Director of Metinvest group Yuriy Ryzhenkov, who was quoted by the press service.
As noted, “Metinvest” at the end of may 2016 agreed with the creditors ‘ Committee restructuring of Eurobonds and PXF-financing. The agreement involves the conversion of all three Eurobond issues into a single issue with a maturity up to December 31, 2021 and four syndicated credit lines for PXF-financing – one line of credit.
At the end of March 2017, the company has released a single new issue of Eurobonds worth $1 billion 197 million 232,103 thousand and issued a new credit line for PXF-financing in the amount of $1 billion 108 million 795,509 thousand
The conditions of circulation of Eurobonds assuming quarterly accrual of interest income with the payment of 18 February, 18 may, 18 August and 18 November. The interest rate is set at 10,875% per annum. In this case, before January 1, 2019 will be paid 25.7% of the accrued interest. The remaining interest income will be paid if the company for that free cash in excess of $180 million in the absence of such means of 60.5% of the total amount of accrued interest will be capitalized, while the balance will be written off. From 1 January 2019, the group intends to pay all accrued interest income.
Metinvest is a vertically integrated mining group of companies managing assets in every link of the production chain from the extraction of iron ore and coal and coke production up to the release of semi-and end products of steel pipes and coils and also manufacture other products with high added value. The group consists of mining and metallurgical enterprises located in Ukraine, Europe and the United States, has a sales network covering all key global markets.
The main shareholders of Metinvest group are SCM (71,24%) and “Smart holding” (from 23.76%), partnering in company’s management.
OOO “Metinvest holding” – managing company of Metinvest group.