Debevoise Advises NLMK on $500 Million Eurobond and Tender Offer

26 September 2017

The London, Moscow and New York offices of Debevoise & Plimpton LLP have advised longstanding client NLMK on a new $500 million, 7-year Eurobond offering, with an annual coupon rate of 4%.

The proceeds from the offering will be used to finance the purchase of existing notes due 2018 and 2019 for the aggregate principal amount of $317 million, 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.

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. Approximately 60% of the issue was purchased by asset managers.

NLMK Group is 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 its previous $700 Eurobond offering in 2016, as well as the existing notes due 2018 and 2019.

The Debevoise team advising NLMK was led by London partner James C. Scoville. It included London partner Alan Davies and Moscow international counsel Dmitry A. Karamyslov. Moscow associates Timur G. Ochkhaev and Svetlana V. Panfilova also advised. Tax advice was provided by New York partner Michael Bolotin and London associate Patrick Fasoro.

Debevoise & Plimpton LLP is a premier law firm with market-leading practices, a global perspective and strong New York roots. We deliver effective solutions to our clients’ most important legal challenges, applying clear commercial judgment and a distinctively collaborative approach.