UC Rusal mandates banks to arrange syndicated finance facility

UC Rusal announced that the сompany has issued a mandate to arrange an up to USD 4.75 billion syndicated finance facility. The facility proceeds will be primarily used to take out the outstanding debt under the International Override Agreement.

The mandated banking group includes BNP Paribas (Suisse) SA, ING Bank N.V., Commerzbank Aktiengesellschaft, Credit Agricole Corporate and Investment Bank, Natixis, Nordea Bank AB (publ), Royal Bank of Scotland, Sberbank of Russia, Societe Generale, Sumitomo Mitsui Banking Corporation, UniCredit Bank AG and WestLB AG.

The bookrunners and initial coordinating mandated lead arrangers of the facility are BNP Paribas (Suisse) SA, ING Bank N.V., Credit Agricole Corporate and Investment Bank, Natixis, Nordea Bank AB (publ), Sberbank of Russia, Societe Generale, Sumitomo Mitsui Banking Corporation and UniCredit Bank AG. WestLB AG acts as a senior initial mandated lead arranger, while Commerzbank Aktiengesellschaft and Royal Bank of Scotland act as initial mandated lead arrangers. BNP Paribas (Suisse) SA and ING Bank N.V. are appointed as documentation coordinators.

The financing to be arranged for Rusal has drawn big attention from the banking community, a wide range of banks has expressed interest to join the facility in the forthcoming syndication, expected to commence shortly. Entry into the facility with a top ticket level ensures for a new participant the titles of a bookrunner and a coordinating mandated lead arranger.

The facility proceeds will be primarily used to fully take out the outstanding debt under the international facilities governed by the International Override Agreement entered into by Rusal and international lenders on 7 December 2009, while the balance will be used to repay Rusal’s other debt. The deal is expected to close by the end of September 2011.

Interest rate includes 3-month LIBOR plus margin. Margin will be reset quarterly in accordance with a margin adjustment mechanism calculated based on the ratio Total Net Debt / covenant EBITDA. As per the current ratio’s level, the applicable margin is 2.35% per annum.

‘Despite the complicated situation in the financial markets, Rusal’s new pre-export finance deal raises much interest and has gained support from the leading international banks. We are pleased to announce that the initial group of arrangers has successfully received their credit approvals, which demonstrates their confidence in our company,’ said Oleg Mukhamedshin, UC Rusal's Head of Equity and Corporate Development.