This announcement does not constitute an invitation or offer to underwrite, subscribe for or otherwise acquire or dispose of any securities nor is it intended to be an inducement to engage in investment activity for the purpose of Section 21 of the Financial Services and Markets Act 2000 of the United Kingdom.
Ferrexpo successfully prices a debut US$500 million eurobond
Ferrexpo is pleased to announce that on 31 March 2011 it priced its debut eurobond issue of US$500 million at par with a 7.875% coupon. The issue’s settlement date is on 7 April 2011 with a maturity of 7 April 2016.
The offering received strong international interest with European, US and Asian investors. The bonds are expected to be officially listed on the London Stock Exchange on or around 7 April 2011.
J.P. Morgan Securities Ltd., Morgan Stanley & Co. International plc and UBS Investment Bank acted as joint bookrunners for the US$ Rule 144A/Reg. S issue.
The bonds are rated B, B+ and B3 by Fitch, S&P and Moody’s respectively.
Chris Mawe, Chief Financial Officer of Ferrexpo, said:
“Ferrexpo is delighted to have successfully placed its debut eurobond issue, which was oversubscribed, at a yield of 7.875%. We believe this is the lowest yield achieved by a company with Ukrainian assets since 2005 and reflects the quality of Ferrexpo's iron ore assets and operations. This long term financing is the next step in the development of our growth strategy as a world class iron ore pellet producer.”
For further information, please contact:
Ingrid McMahon +44 207 389 8304
Pelham Bell Pottinger
Charles Vivian +44 207 861 3126
James Macfarlane +44 207 861 3864
Not for release, directly or indirectly, in or into the United States of America, Australia, Canada or Japan. The securities referred to herein have not been and will not be registered under the US Securities Act of 1933 (the “Securities Act”), and may not be offered or sold in the United States unless the securities are registered under the Securities Act or an exemption from the registration requirements of the Securities Act is available. These materials do not constitute or form part of any offer or solicitation to purchase or subscribe for securities in the United States. No public offering of the securities will be made in the United States.
Notes to Editors:
Ferrexpo is a Swiss headquartered iron ore company with assets in Ukraine. It is principally involved in the production and export of high quality iron ore pellets, which are used in the manufacture of steel. Ferrexpo’s resource base is one of the largest iron ore deposits in the world. Its current producing asset, FPM, produced approximately 10 million tonnes of iron ore pellets in 2010 making it the largest exporter of pellets in the CIS. The Company has a diversified customer base supplying steel mills in Austria, Serbia, Slovakia, Czech Republic, Germany and other European states, as well as in China, India, Japan, and other Asian countries. Ferrexpo is listed on the main market of the London Stock Exchange under the ticker FXPO. For further information, please visit www.ferrexpo.com