The
URALCHEM Group has refinanced part of its loan portfolio by bringing
in a five-year syndicated loan.
Moscow,
Russia (January 3, 2013) -- The URALCHEM
Group, a leading Russian producer of mineral
fertilizers, has refinanced part of its loan portfolio by bringing in
a five-year syndicated loan. As a result of the early redemption of a
number of previously obtained loans, all material collaterals have
been released, loan payments have been diversified into an optimal
currency basket and the average term of the loans in the portfolio
has been significantly increased.
The
syndicated loan was obtained on 21 December 2012 from a pool of
leading international and Russian banks, including JSC Sberbank of
Russia, Sberbank (Switzerland) AG, ING Bank NV, Raiffeisenbank, VTB
Bank (France) SA, HSBC Bank PLC and Rosbank (Société Générale
Group).
The
syndicated loan has become the first loan of this kind in the
company's history and attracted considerable interest from the
banking community. In the process of syndication, the pool of banks
was willing to provide funding of over $500 million, of which
URALCHEM took $220 million. The loan documentation made provision for
an option of a drawdown in Euros, which the company used. The loan
period is 5 years and the company is using assignment of rights on
its export contracts as security interest for the loan.
The
funds raised have been allocated, among other things, to the early
repayment of the company's current liabilities, which has allowed the
removal of collateral obligations from the tangible assets and shares
of the Group's enterprises.
"The
banks' interest in the company confirms its strong financial and
operating position, its competitive advantages and the attractiveness
of the industry," said CEO of URALCHEM OJSC Dmitry Konyaev. He
added, "The development strategy that we have chosen has allowed
the company to significantly improve the structure of its loan
portfolio and reduce its volume in 2012. By the end of 2012 the ratio
of net debt to EBITDA has become less than 1, which is one of the
best results for companies in our industry both domestically and
abroad. The fact that first-class banks were willing to provide us
with more than twice the amount and that the transaction has allowed
us to free up collaterals, is demonstrating URALCHEM's strong
financial position."
-Ends-
Public
Relations Department
URALCHEM,
OJSC
Tel:
+7 (495) 721 89 89
E-Mail:
pr@URALCHEM.com
URALCHEM,
OJSC is one of the largest producers of nitrogen and phosphate
fertilisers in Russia and the CIS with production capacities of over
2.5 million tonnes of ammonium nitrate, 2.8 million tonnes of
ammonia, 0.8 million tonnes of MAP and DAP, 0.8 million tonnes of
complex fertilisers and 1.2 million tonnes of urea. URALCHEM, OJSC is
the second largest ammonium nitrate producer in the world and number
one in Russia, the second largest producer of nitrogen fertilisers in
Russia. Key production assets of URALCHEM, OJSC include Azot Branch
of URALCHEM, OJSC in Berezniki, Perm Region; OJSC Minudobrenia, Perm;
MFP Kirovo-Chepetsk Chemical Works, OJSC Branch in Kirovo-Chepetsk,
Kirov region; Voskresensk Mineral Fertilisers, OJSC in Voskresensk,
Moscow region.
Some
of the information in this press release may contain projections or
other forward-looking statements regarding future events or the
future financial performance of URALCHEM. We wish to caution you that
these statements are only predictions. We do not intend to update
these statements and our actual results may differ materially from
those contained in our projections or forward-looking statements,
including, among others, the achievement of anticipated levels of
profitability, growth, cost and synergy of our recent acquisitions,
the impact of competitive pricing, the ability to obtain necessary
regulatory approvals and licenses, the impact of developments in the
Russian economic, political and legal environment, financial risk
management and the impact of general business and global economic
conditions.
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