Metinvest mining and metal group has placed eurobonds under the 2012 eurobond refinancing program and pre-export financing facility ((PXF-financing): $825 million bonds due on April 23, 2023 and $525 million bonds due on April 23, 2026. According to information in the Bloomberg system, five-year bonds were placed at 98.986% of their face value. Taking into account the coupon of 7.75%, yield for them is 8% per annum.
The eight year bonds were placed at 98.583% of their face value. Taking into account the coupon of 8.5%, yield for them is 8.75% per annum.
As reported, on March 19 Metinvest offered the holders of eurobonds circulating in the market, the total nominal volume of which is $1.187 billion, to redeem the securities ahead of schedule.
The group at the initial stage of the offer received proposals for the buyback of eurobonds for $1.068 billion. In addition, the holders of eurobonds worth $1.149 billion agreed to amend the terms of their circulation.
The deadline for applications for redemption expires at 16:00 London time on April 19, 2018.
Metinvest also reported on achieving agreement with the creditors, who provided PXF-financing, on the revision of the terms of loans, including their extension.
Synchronously the group announced the issue of new bonds.
Metinvest B.V. (the Netherlands), the parent company of the Metinvest mining and metallurgical group, in 2017 increased capital investments by 45% compared to the previous year, to $542 million.
According to the audited consolidated financial results for 2017, expenditures on support projects accounted for 83% of total investments (75% in 2016), on strategic projects some 17% (25%).
At the same time, the metallurgical segment accounted for 51% of capital investments (52% in 2016), mining for 48% (46%).
Corporate expenses were $9 million for the reporting period ($4 million for 2016).
The total amount of net cash used in financing activities in 2017 was $110 million, which is 5% more than a year ago.
Net cash used in investing activities increased by 36% over the period compared to 2016, to $449 million. The total cash flow for the acquisition of fixed assets and intangible assets was $465 million, which is 30% more than in 2016. There were no proceeds from the sale of subsidiaries and affiliated companies, while in January 2016 the company received $6 million from the sale of its stake in Black Iron (Cyprus) Limited. Proceeds from the sale of fixed assets and intangible assets stood at $1 million compared with $3 million in 2016. The total amount of interest received was $15 million compared to $18 million in 2016.
