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Severstal sells convertible bond

September 24, 2012 Vedomosti (translated by Cbonds)
Severslal needed several hours to price a $475m convertible bond at 1%. The effective rate is 2%. The deal was closed very quickly as the company unveiled its plans to sell a $450m bond with a possible $50m upsize Wednesday last week and in several hours from then announced the price. The order book was several times oversubscribed, according to a source close to the deal. At the initial stage the deal was primarily a private offering to European investors, the source noted. However, the bonds will be traded on the LSE later. Bondholders have the right to convert their bonds into GDRs of Severstal at any point from 41 days after the issue date up to the close of business on the seventh dealing day prior to the final maturity date. The conversion price was set at US$19.08, a premium of 45 per cent above the reference price of US$13.1580.

The convertible bond issue "will help bring down debt servicing costs effectively utilizing quasi-treasury shares," said a spokesman from Severstal. The proceeds will be used for refinancing purposes.
  • Status
  • Country of risk
  • Redemption (put/call option)
    *** (***)
  • Amount
    42,600,000 USD
  • М/S&P/F
    — / — / —
Company — Severstal
  • Full name
    Severstal PJSC
  • Registration country
  • Industry
    Ferrous metals