EVRAZ North America Prices Offering of 7.5% Senior Secured Notes Due 2019
November 3, 2014 - EVRAZ plc ("EVRAZ") announced today that its subsidiary EVRAZ Inc. NA Canada ("EICA") priced $350 million aggregate principal amount of 7.5% senior secured notes due 2019 (the "Notes") in a private placement exempt from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"). The closing of the offering is expected to occur on November 7, 2014, subject to customary closing conditions.
The Notes will be guaranteed on a senior basis by EICA's parent EVRAZ North America Limited (the "Company"), as well as the Company's subsidiary EVRAZ Inc. NA ("EINA"), and certain of EICA's and EINA's subsidiaries. These are generally the same entities that guarantee the Company's existing senior secured credit facility. The Notes and the guarantees will be secured by certain assets of EICA and the guarantors.
The Company intends to use the net proceeds from the offering of the Notes to refinance a portion of its outstanding debt owing to other members of the EVRAZ Group.
The Notes and the related guarantees will not be registered under the Securities Act or any state securities law and may not be offered or sold in the United States absent registration or an applicable exemption from registration under the Securities Act and applicable state securities laws. The Notes and the related guarantees will be offered in the United States only to qualified institutional buyers under Rule 144A of the Securities Act and outside the United States under Regulation S of the Securities Act.
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EVRAZ is a vertically integrated steel, mining and vanadium business with operations in the Russian Federation, Ukraine, Kazakhstan, USA, Canada, Czech Republic, Italy and South Africa. EVRAZ is among the top steel producers in the world based on crude steel production of 16.1 million tonnes in 2013. A significant portion of the company's internal consumption of iron ore and coking coal is covered by its mining operations. The company's consolidated revenues for the year ended 31 December 2013 were US$14,411 million, and consolidated EBITDA amounted to US$1,821 million. The company's consolidated revenues for the six months ended 30 June 2014 were US$6,805 million, and consolidated EBITDA amounted to US$1,080 million.
EVRAZ North America Limited (the "Company") is a wholly owned subsidiary of EVRAZ plc. The Company is a leading North American producer of engineered steel products for rail, energy and industrial end markets. The Company has six production sites located in the USA (Portland, Oregon; Pueblo, Colorado) and Canada (Regina, Saskatchewan; Calgary, Camrose and Red Deer, Alberta).
Forward-Looking Statements
Certain statements in this press release constitute "forward-looking statements" relating to the offering of the Notes. These statements are subject to significant risks and uncertainties, including, without limitation, risks and uncertainties related to economic, market or business conditions and satisfaction of customary closing conditions related to the private offering. No assurance can be given that the offering of Notes discussed above will be consummated on the terms described or at all. We undertake no obligation to release publicly any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events unless we are required to do so by law.
For further information:
Media Relations:
Vsevolod Sementsov
VP, Corporate Communications
London: +44 207 832 8998 Moscow: +7 495 937 6871
[email protected]
Investor Relations:
London: +44 207 832 8990 Moscow: +7 495 232 1370
[email protected]
