Russian non-ferrous metals producer Norilsk Nickel (NN) approved placing four issues of exchange bonds worth a total RUB 50bn ( USD 1.5bn ). BO-05 to B0-08 series worth RUB 10bn and RUB 15bn will have maturities of 10 years. Currently NN has three issues of exchange bonds worth RUB 35b in circulation. In October NN placed USD 1bn worth of 7-year Eurobonds at 5.55%. The bonds were placed at the lower band of the yield guidance of 5.55%-5.65%, which was already lowered once from initial 5.875%-6%. Reportedly, the book was oversubscribed 6-fold. NN picked Barclays , BAML, Citi , Soceite Generale, and Sberbank CIB as the organisers of the placement. Standard & Poor's previously month upgraded the outlook on BBB-/ruAA+ rating of Russia -based metals and mining group NN from Negative to Stable. The positive rating action was attributed to recently reviewed strategy that plans lower dividends in 2014-2015 in view of weak nickel prices. The agency welcomed key shareholders ( Interros , Rusal , Millhouse) that are able to agree on new strategy and financial policy since the singing of the new agreement nine months ago. S&P's expects group's financial strategy to be more predictable. The risk of higher debt level in 2016 still exists, however, it is mitigated by the new policy of net debt to EBITDA of 2x or below and current modest adjusted debt to EBITDA of 1.3x. The policy will be complied with due to industry-leading cost position and despite currently weak nickel price environment.
Most Popular Stories
- Koch Brothers Step up Anti-Obamacare Campaign
- FDIC Sues Big Banks Over Rate Manipulation
- Vybz Kartel Convicted of Murder
- FDIC Accuses Big Banks of Fraud, Conspiracy
- Stocks Close Lower Ahead of Crimea Vote
- U.S. Consumer Sentiment Falls in Early March
- Ulta Shares Look Good on Strong Q4
- Is Malaysian Airlines Flight 370 in Andaman Sea?
- Jittery Investors Dumping Russian Stocks
- SoCalGas Reaches Record Spend on Diversity Suppliers