On February 22, 2007OJSC MMC Norilsk Nickel (Norilsk Nickel orthe Company) and agroup ofwestern financial institutions signed a$ 450million loan facility agreement.
The facility was arranged, fully underwritten and syndicated byBarclays Capital (the investment banking division ofBarclays Bank PLC), ING Bank N.Vand Socit Gnrale Corporate and Investment Banking. Socit Gnrale isalso acting asFacility Agent and Documentation Agent. The loan syndication was heavily oversubscribed and Norilsk Nickel elected toincrease the facility size to$450 million from the original launch amount of$300 million.
This transaction represents abenchmark deal onthe Russian syndicated loan market interms oftenor and pricing. Itis the first 5year, unsecured revolving credit facility with abullet repayment for aRussian borrower. The Company pays amargin of42.5bps over Libor inthe first 3years, increasing to50bps for years 4and 5.
The Companys Chief Financial Officer Igor Komarov said: Despite very aggressive terms and conditions ofthis new credit facility, the syndication success reflects the unique position ofNorilsk Nickel inthe metals & mining industry underpinned bystrong financial profile, clear and transparent corporate strategy, the availability ofexceptional resource base, aswell asits leadership onthe global markets ofnickel, palladium, platinum and copper.
Norilsk Nickel isthe worlds leading producer ofnickel and palladium, one ofthe largest producers ofplatinum and one ofthe top ten producers ofcopper inthe world. For the full year of2005, Norilsk Nickel recorded revenues of$7.2billion with strong EBITDA margin and cash flow generation. Inthe first half of2006, Norilsk Nickels revenues reached $4.2billion. The company israted Baa2 byMoodysInvestors Service and BBB- byStandard & Poorsand Fitch Ratings.
The following banks joined the transaction:
Bookrunners/ Mandated Lead Arrangers: Barclays, ING, Socit Gnrale Corporate and Investment Banking
Mandated Lead Arrangers: Bayerische Hypo-und Vereinsbank AG, CALYON, Citigroup, Commerzbank AG, Mizuho Corporate Bank Ltd, The Bank ofTokyo-Mitsubishi UFJ, Ltd, Sumitomo Mitsui Banking Corporation Europe Limited.
Co-Arrangers: BNP Paribas SA, DekaBank Deutsche Girozentrale Luxembourg SA, DZBank AG, Intesa Sanpaolo Group, Natixis.