Evraz signs US$950M Loan agreement for 5 years

Evraz Group S.A. (LSE: EVR) (“Evraz” or the “Group”) announces that it has signed a US$950 million structured credit facility (the “Facility”), maturing in 2015 and secured with assignment of sales proceeds under certain export contracts. Interest under the Facility is payable at a rate equal to LIBOR plus a margin calculated by reference to Evraz’s net leverage ratio, currently set at 2.8 percent.

The proceeds of the Facility will be used to fully prepay the outstanding amount of the Group’s existing syndicated facility, which matures in 2012. The entry into the Facility follows the completion of a 5-year 15 billion rouble bond issue which took place in early November. As a result of these refinancing activities, Evraz has lengthened the average maturity of its indebtedness and has no remaining significant debt repayments in 2011 or 2012.

The entry into the Facility, twice oversubscribed, was arranged and fully underwritten by a group of 14 international banks. Deutsche Bank AG, ING Bank N.V. and The Royal Bank of Scotland plc acted as Coordinators of the Facility.

Clifford Chance acted as legal counsel for the banks and the Company retained Gibson Dunn as legal advisor and Rothschild as financial advisor.