Metinvest BV the parent company of the international vertically integrated steel and mining group of companies announced that its subsidiary, Metinvest Trametal SpA had repaid ahead of schedule the remaining EUR 107.5 million of a 7 year EUR 410 million Senior Facilities Agreement secured in January 2008.
The Facility was used by Metinvest for the purchase of 100% equity interest in Trametal SpA and its subsidiary Spartan UK Limited two plate rolling facilities located in San Giorgio di Nogaro and in Newcastle (UK), respectively. The Facility was arranged by a syndicate of 10 banks, with ABN Amro Bank NV and BNP Paribas SA acting as Mandated Lead Arrangers and Underwriters.
Metinvest's decision to fully repay the Facility pledged against fixed assets and shares of Metinvest Trametal is in line with the on-going optimisation of the group's corporate debt structure, which provides for arrangement of all external financing on the level of the parent company, Metinvest BV. The Facility was repaid from the cash accumulated by Metinvest Trametal.
Mr Sergiy Novikov CFO of Metinvest commented that "Repayment of the Facility decreases our short-term financial obligations and total indebtedness, and lowers the share of senior secured debt improving the credit rating of Metinvest's public debt instruments. The removal of covenants from Metinvest Trametal frees up cash flows from two profitable steel mills to be used for implementation of capital expenditure projects in line with our Technological Strategy."
