Debevoise & Plimpton has advised NLMK on a USD 500 million 7-year Eurobond offering.
The offering was made with an annual coupon rate of 4.70%, which Debevoise reports is "the lowest rate achieved by Russian & CIS corporate issuers for a USD Eurobond issue of seven years or longer since the previous NLMK issue in September 2017." The 4.7% Loan Participation Notes due in May 2026 were issued by Steel Funding D.A.C., an Irish company formed for the sole purpose of issuing debt instruments and financing loans to NLMK.
J.P. Morgan and Societe Generale acted as the Joint Global Coordinators and Joint Bookrunners, and ING and UniCredit Bank acted as the Joint Bookrunners for the new issuance, which NLMK reports "was oversubscribed by more than three times with the order book exceeding USD 1.7 billion at the peak and more than 150 investors. The final order book was subscribed by a broad range of international investors, including investors from the UK (40%), Europe (27%), the United States (15%), Russia (15%) and others, with Asset Managers & Funds taking the majority (78%) of allocations followed by Banks & Private Banks (22%)."
The Debevoise team was led by London Partner James Scoville and included London Partner Alan Davies, Moscow International Counsel Dmitry Karamyslov and Associates Svetlana Panfilova and Timur Ochkhaev. Tax advice was provided by London International Counsel Cecile Beurrier and Associate Patrick Fasoro.