Alchevsk Steel draws USD 339 mln credit from parent company

Обзоры по компаниям и отраслям 21.01.2013 Alchevsk Iron and Steel Works (ALMK UK) has drawn USD 339 mln out of a total USD 865 mln loan that was secured from the Cypriot company Magrit in 2011, the company reported on Jan. 18. The total withdrawn under the facility amounts to USD 831 mln at a rate of 5.125%, which matures in December 2016. Roman Topolyuk: The new loan will increase ALMK’s total debt by 23% before the company refinances part of its current debt, which is already considerable – USD 441 mln as of end-September 2012. With very low cash balance (USD 3 mln), current debt refinancing seems to be one of the key purposes for the funds, while CapEx and working capital needs appear to be the second priority under such circumstances. Worth noting, the company has used its previous debt financing to build two power turbines that will transform its industrial gas waste into electricity. One of these two turbines will be commissioned this month. This single facility will halve external electricity purchases by Alchevsk to save around USD 50 mln annually (or USD 15 per ton).