UC RUSAL signs new syndicated USD1.7 billion Pre-Export Finance Term Facility Agreement

MOSCOW, 29-May-2017 — /EuropaWire/ — UC RUSAL (SEHK: 486, Euronext: RUSAL/RUAL, Moscow Exchange: RUAL/RUALR), a leading global aluminium producer, announces that it has entered into a new syndicated Pre-Export Finance Term Facility Agreement with the following key terms and conditions: amount of USD1.7 billion, interest rate 3M LIBOR+3% per annum, maturity 5 years (repayment starting in 2 years). The proceeds of the facility will be used for the purpose of refinancing the Company’s current debt.

During the syndication process the commitments received exceeded USD2 billion, due to strong support from the lenders. The final facility amount was reduced to USD1.7 billion in line with the Company’s actual needs to refinance its indebtedness, including the Combined PXF Facility, and its deleveraging strategy.

In addition to a longer maturity and a lower interest rate, the Company agreed with its lenders a new approach to the calculation of certain covenants. Specifically, a Total Net Debt/EBITDA covenant will be calculated with the exclusion of debt secured by MMC Norilsk Nickel shares and dividends from MMC Norilsk Nickel shares.

Conditions for the dividend payment have also been further aligned to RUSAL’s Dividend Policy adopted in August 2015, with the amount of dividends to reach up to 15% of Covenant EBITDA (the latter includes the dividends from MMC Norilsk Nickel). In addition, the “cash sweep” mechanism and corresponding restrictions to be cancelled.

“This new PXF deal is yet another acknowledgement of RUSAL’s financial soundness and the banking community’s trust in the Company following the successful placement of two tranches of Eurobonds and debut tranche of Panda Bond earlier this year,” commented Oleg Mukhamedshin, Deputy CEO of UC RUSAL.


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