The Placement of the NSMMZ CLNs is Completed
September 19, 2005 Сbonds
Company NSMMZ, which is a part of Maksi-Group has placed the first issue on the international capital
markets. On Friday, September 16th, 2005 NSMMZ issued Credit-linked Notes (CLNs) in the amount of
100 million USD. URALSIB acted as the Lead-Manager on this issue.
During the placement, the CLNs were oversubscribed and submitted allocation requests stood at 130
million USD. The coupon was set at 9.8% for the tenor of the notes.
Terms of the Issue:
Book-Closing Date: September 16th, 2005
Settlement Date: September 22nd, 2005.
Maturity Date: March 22th, 2005
Reference Entity: Nizhneserginsky Metizno-Metallurgichesky Zavod
Amount: 100 million USD
Coupon: set at 9.8% for the tenor of the notes, paid semiannually
Lead-Manager: URALSIB FC
Co-Managers: Surgutneftegazbank, Soyuz Bank
Reference Entity Information:
JSC Nizhneserginsky Metizno-Metallurgichesky Zavod (NSMMZ) is a part of the Maksi-Group verticallyintegrated
steel producer. NSMMZ is a flexible and scalable metallurgy complex benefiting from a full
production cycle and internally available raw material base. The Company’s production facilities include
an electric steelmaking complex in Revda and a rolling complex in Nizhnie Sergy. Another steelmaking
and rolling production complex located in Berezovsky is currently under construction.
The business strategy of the Group is aimed on strengthening its positions in high value-added end-use
products market such as section steel for construction, steel wire and hardware. The key feature of
Company’s development concept is construction of mini-plants that would use electric furnace
steelmaking technology and produce section steel by cost-effective continuous casting. The Company
has announced a substantial increase in sales in 2005 due to modernization completion and further
expansion of production facilities.
Country of riskRussia
Redemption (put/call option)
М/S&P/F— / — / —
Full nameNizhneserginski hardware-metallurgical plant