01:01 GMT02 April 2020
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    Russian steelmaker Severstal to place $1.25 bln in Eurobonds

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    MOSCOW, July 23 (RIA Novosti) - Russian steel producer Severstal [RTS: CHMF] said on Wednesday it would place Eurobonds worth $1.25 billion with a coupon rate of 9.75% per annum.

    The proceeds from the five-year Eurobonds will be used to finance the purchase of North American assets, Severstal said.

    In early July, Russia's largest steel producer finalized a deal to buy 100% of U.S.-based WCI Steel's shares for $140 million. In May, the company closed a deal to purchase the U.S.-based Sparrows Point steel mill from ArcelorMittal for $810 million.

    "Together with Severstal's current U.S. operations in Dearborn, Michigan, Columbus, Mississippi, and the recently acquired Sparrows Point in Baltimore, Maryland, WCI will increase the Company's North American leadership in the high-quality flat-rolled steel segment for the automotive, appliance, furniture, construction and energy markets," the Russian steel firm earlier said in a statement.

    Severstal is currently in a deal to purchase the U.S.-based Esmark for around $775 million.

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