Demand for Severstal’s dlr Eurobond exceeds $1 bln–source

February 16, 2017 - Prime

 

Demand for Russian steelmaker Severstal’s 4.5-year dollar-denominated Eurobonds maturing in August 2021 has exceeded U.S. $1 billion, a banking source told PRIME on Thursday.

The company is offering the Eurobonds with a yield guidance of about 4%, a banking source said earlier in the day.

Severstal held a road show in Europe and the U.S. on February 10–Wednesday. Citi, ING, J.P. Morgan and SG CIB were appointed as the organizers.

Earlier in February, Severstal sold $250 million convertible Eurobonds with a zero coupon and a 3-year buyback offer. The initial price of conversion into Severstal’s global depository receipts (GDRs) amounted to $20.33 per GDR with a 35% premium to the market.
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Issuer: Severstal
Issuer profile:
Severstal combines the growth potential of Russia’s emerging market with the margin sustainability of an international steel producer. The company has 3 divisions: Severstal Russian Steel; Severstal ... more
Outstanding issues:
7 issuesUSD3,775,000,000
Issuer rating:
Moody's Investors ServiceBa1/StableLT- foreign currency02/21/2017
S&P Global RatingsBBB-/StableForeign Currency LT09/20/2016
S&P Global RatingsBBB-/StableLocal Currency LT09/20/2016
S&P Global RatingsruAAA/LT National Scale (Russia)08/04/2016
Fitch RatingsBBB-/StableLT Int. Scale (foreign curr.)11/07/2016
Fitch RatingsWithdrawn/National Scale (Russia)02/06/2017
Fitch RatingsBBB-/StableLT Int. Scale (local curr.)11/07/2016