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Evraz Incentivizes Conversion of 2014 Bonds
06/28/2011 - Evraz Group S.A. has successfully incentivized the conversion of US$647,800,000 in principal amount (or 99.7% of the total outstanding amount) of convertible bonds originally due in 2014 and bearing annual coupon of 7.25%.
Evraz Group S.A. has successfully incentivized the conversion of US$647,800,000 in principal amount (or 99.7% of the total outstanding amount) of convertible bonds originally due in 2014 and bearing annual coupon of 7.25%.
The total cash incentive payment to facilitate the conversion will be US$158,347,519 and the total accrued interest payable in respect of the converted bonds will be US$9,262,633. Payment of the accrued interest on the converted bonds is to be settled on or before June 29, 2011. The incentive payments will be settled on or about July 8, 2011.
Following this conversion 30,672,349 GDRs will be issued, representing 10,224,116 newly issued ordinary shares of the company, with the settlement of such GDRs expected to occur on or about July 8, 2011.
Giacomo Baizini, CFO of Evraz, said: “I am glad to see overwhelming acceptance of our offer by the bondholders. This transaction is in line with Evraz’s overall deleveraging strategy. Accelerated conversion of the bonds will result in the reduction in net debt and increase in equity on the company's balance sheet.”
