By Rebecca Melvin
Concord, N.H., May 26 – Russia’s Novolipetsk Steel (NLMK) priced $500 million of five-year loan participation notes (Baa2//BBB) on Wednesday at par for a yield spread of 170.2 basis points over mid-swaps, according to a syndicate source.
Pricing came tight to talk for a yield between mid-swaps plus 190 bps and 200 bps.
BofA Securities, JPMorgan and Societe Generale CIB were the joint lead managers and joint bookrunners for the Rule 144A and Regulation S notes.
The initial price talk was released in conjunction with expiration of an invitation by NLMK (acting via Steel Funding DAC as the offeror) to holders of its outstanding U.S. dollar-denominated notes due 2023 and 2024 to tender up to $500 million principal amount of the notes for cash. The new notes’ proceeds are to finance the tender offers, with remaining proceeds, if any, to be used for general corporate purposes.
The steel company is based in Lipetsk, Russia.
| Issuer: | Steel Funding DAC
|
| Borrower: | Novolipetsk Steel
|
| Amount: | $500 million
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| Description: | Loan participation notes
|
| Maturity: | June 2, 2026
|
| Bookrunners: | BofA Securities, JPMorgan and Societe Generale CIB
|
| Coupon: | 1.45%
|
| Price: | Par
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| Yield: | 1.45%
|
| Spread: | Mid-swaps plus 170.2 bps
|
| Trade date: | May 26
|
| Settlement date: | June 2
|
| Ratings: | Moody’s: Baa2
|
| Fitch: BBB-
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | Mid-swaps plus 190-200 bps
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