NLMK’s €500 Million Eurobond Offering and Tender Offer

Debevoise & Plimpton LLP have advised NLMK in the transaction.

NLMK executed its EUR 500 million 5-year Eurobond offering with an annual coupon rate of 1.45%, the lowest coupon ever achieved by a Russian non-state owned corporate issuer.

J.P. Morgan, BofA Securities and Société Générale acted as the Joint Lead Managers and Joint Bookrunners for the new issue.

The proceeds from the issue will be used to finance the purchase of existing notes due 2023 and 2024 for the aggregate principal amount of $470.6 million, as well as for NLMK’s general corporate purposes. Debevoise has also advised NLMK on the related tender offer for the outstanding 2023 and 2024 notes.

NLMK Group is the largest steelmaker in Russia and one of the most efficient in the world. NLMK Group’s steel products are used in various industries, from construction and machine building to the manufacturing of power-generation equipment and offshore wind turbines. NLMK operates production facilities in Russia, Europe and the United States. NLMK’s steel production capacity exceeds 18 million tonnes per year.

The Debevoise team advising NLMK was led by London partner James Scoville (Picture). It included London partner Alan Davies, Moscow international counsel Dmitry Karamyslov and associates Timur Ochkhaev and Evgenii Lebedev. Tax advice was provided by New York partner Michael Bolotin and associate Sabrina Hsieh, and London associate Patrick Fasoro.

Involved fees earner: Michael Bolotin – Debevoise & Plimpton; Alan Davies – Debevoise & Plimpton; Patrick Fasoro – Debevoise & Plimpton; Dmitry Karamyslov – Debevoise & Plimpton; Evgenii Lebedev – Debevoise & Plimpton; Timur Ochkhaev – Debevoise & Plimpton; James Scoville – Debevoise & Plimpton;

Law Firms: Debevoise & Plimpton;

Clients: NLMK Group;

Author: Federica Tiefenthaler