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Debevoise Advises NLMK on USD 700 Million Eurobond and Tender Offer

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The London, Moscow, and New York offices of Debevoise & Plimpton LLP have advised longstanding client NLMK on a new USD 700 million, 7-year Eurobond offering, with an annual coupon rate of 4.5%. Linklaters advised Joint Lead Managers Deutsche Bank AG, London Branch, ING Bank N.V., London Branch, J.P. Morgan Securities plc, and Societe Generale.

The 4.5% Loan Participation Notes due 2023 were issued by Steel Funding Limited, an Irish company formed for the purpose of issuing the Notes.

The proceeds from the offering will be used to finance the purchase of existing notes due 2018 and 2019, as well as for NLMK's general corporate purposes and refinancing of its current debt.  Debevoise is also advising NLMK on the related tender offer for the outstanding 2018 and 2019 notes, which is expected to complete on June 17, 2016.

According to Debevoise, “the order book indicated a high level of demand from a broad range of international investors, including investors in the Europe, the U.S. and Russia, as well as various regions in Asia.”

Debevoise describes the NLMK Group as "a vertically integrated steelmaking company, the largest in Russia, and one of the most efficient in the world.” NLMK’s production assets are located in Russia, Europe, and the United States. The Company’s steel processing capacity is over 17 million tonnes per year, of which about 16 million tonnes are produced in Russia.

Debevoise had previously advised NLMK on the existing notes due 2018 and 2019.

The Debevoise team advising NLMK was led by London Partner James Scoville and included London Partner Alan Davies and Moscow International Counsel Dmitry Karamyslov and Maxim Kuleshov. Moscow Associates Timur Ochkhaev, Elena Klutchareva, and Marina Abazyan also worked on the matter. Tax advice was provided by New York Partner Burt Rosen, London International Counsel Cecile Beurrier, and London Associate Patrick Fasoro. 

Linklaters did not reply to our inquiry about its team on the matter.

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