Rusal Arranged for Debt Restructuring over 7 Years with Foreign Banks

31.07.2009 — News

United Company RUSAL has come to an agreement with the International Creditors Coordinating Committee on the key conditions of the long term restructuring of the company's debt. The metal makers managed to agree on the entire amount of its debt to more than 70 banks.

Company's press service informed RusBusinessNews that RUSAL shall repay the current debt in two stages within 7 years. By the 4th quarter of 2013 the company shall reduce its debt to Western creditors by 5 billion U.S. dollars. Furthermore, a part of the interest payments will be made in monetary form at LIBOR + 1.75% to 3,5% (depending on the level of debt of the company), whilst the remaining interest will be capitalized. In order to accumulate funds for ensuring a stable operation of the company and settlement of its accounts with the creditors, RUSAL shall not pay dividend until the Net Debt/EBITDA ratio reaches 3.

Upon completion of the first stage, the remaining debt will be refinanced by the current creditors for another 3 years. Moreover, United Company RUSAL will be able to refinance the loan on market terms if the company deems this option to be more beneficial.

Within the next few months RUSAL plans to sign similar agreements with Russian banks. In accordance with the confidentiality terms of the loan agreements, the company does not comment on the amount of the debt.