ezzsteel defers principal payments on EGP 440 million bonds due 2014

By Susanna Moon

Chicago, June 12 - ezzsteel said it deferred principal payments on its EGP 440 million bonds due 2014 by one year.

The company will defer EGP 220 million of principal payments originally scheduled for 2013, according to a company press release.

Under the terms of the agreement, the company will continue to pay interest payments on their original due dates, and the rate will incorporate a 2% increase to reflect the new repayment profile, the release noted.

The deferral will support ezzsteel's investment in its vertical integration project at Suez, which is scheduled to be completed by end of 2014, the company said.

"Today's announcement marks an important step in our growth plan through the development of our vertical integration - DRI - project at Suez," Paul Chekaiban, chairman and managing director of ezzsteel, said in the release.

"The revised terms of our bond will allow us to direct freed cash flows to investing in this important project and demonstrates our bondholders' underlying confidence in both the prospects of the new facility and ezzsteel itself."

ezzsteel is an independent steel producer based in Cairo.

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