NLMK Europe Successfully Closed €400m Facility for Steel Processors

Following a three times oversubscription during syndication, NLMK Europe increased the amount of its four-year syndicated revolving collateralised finance facility from €325m to €400m. The funds raised will be used for working capital and other corporate purposes for NLMK Europe Sales, NLMK Coating and NLMK Verona Steel. The facility was closed and funded on 18 July 2011. The facility carries a margin of 1.45%.

Deutsche Bank led the facility is as co-ordinator, facility agent, collateral agent and bookrunner. The facility closed with a syndicate of 15 banks: BayernLB, Munich; Crédit Agricole Corporate and Investment Bank; Citibank; Deutsche Bank, Amsterdam Branch; DZ Bank Deutsche Zentral-Genossenschaftsbank, Frankfurt am Main; HSBC Bank; ING Belgium, Geneva Branch; Natixis; OJSC Nordea Bank; Raiffeisen Banking Group Austria; Societe Generale CIB; UniCredit; WestLB; KBC Bank, Succursale Française and Banca Monte Paschi Belgio.

The transaction follows the recent acquisition of the remaining 50% of shares in Steel Invest and Finance by OJSC NLMK and the creation of NLMK Europe. The new facility allows for a more flexible and uniform use of credit between NLMK Europe’s operating companies. The Facility is secured by a borrowing base of inventories and receivables and is supported by a guarantee from the parent company OJSC NLMK.

Benedikt Reithofer, chief financial officer (CFO), NLMK International, said: “We are very proud of the closing of this important syndication which could be structured thanks to the strong support of NLMK. The excellent and unique structure of the deal was very well received by the market with an oversubscription of three times the requested amount and allows NLMK Europe to simplify its working capital lines with a single credit facility that optimises our utilisations in the various countries.”


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