EVR Evraz Plc

TIDMEVR

RNS Number : 3826F

Evraz Group S.A.

21 April 2011

THIS ANNOUNCEMENT IS NOT FOR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA, ITALY, THE RUSSIAN FEDERATION OR JAPAN OR IN ANY OTHER JURISDICTION IN WHICH OFFERS OR SALES WOULD BE PROHIBITED BY APPLICABLE LAW

EVRAZ Prices US$850 Million of Eurobonds due 2018

21 April 2011 - EVRAZ GROUP S.A. (LSE: EVR) ("EVRAZ" or "the Company") announces pricing of the issuance of US$850 million senior unsecured Notes due 2018 and bearing a fixed interest rate of 6.75% per annum. Closing and settlement of the transaction is expected on 27 April.

The proceeds from the Notes will be used by EVRAZ for refinancing, in part to fund the tender offer for of the outstanding US$1,300,000,000 8.875% Notes due 2013, which was launched on 5 April 2011 and is expected to expire on 3 May 2011. The target acceptance amount in the tender offer is expected to be US$616,827,000. The remaining amount will be used for refinancing of other debt obligations of the Company.

The book was oversubscribed by more than two times indicating high level of demand from investors. Orders from United Kingdom and United States investors amounted to 29% and 26% of the total book respectively.

Giacomo Baizini, EVRAZ Chief Financial Officer, said, "The focus of our financial management is on further refinancing of medium-term debt through longer-term instruments. With current favourable conditions in the capital markets we decided to pre-emptively address the 2013 maturities and refinance part of the 2013 Notes with a new 7-year Eurobond. Improved financial results for 2010 strengthened the investors' confidence and enabled to price the Notes at an interest rate of 6.75% p.a., representing the lowest ever coupon for EVRAZ Eurobond issues. The deal clearly demonstrates investor confidence in EVRAZ credit risk".

The Lead Managers and Joint Bookrunners are Goldman Sachs International, ING and VTB Capital. The Notes are expected to be rated B2 by Moody's, B+ by Standard & Poor's and BB- by Fitch.

This announcement does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire securities of EVRAZ GROUP S.A. in any jurisdiction or an inducement to enter into investment activity. No part of this announcement, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever.

This announcement is not an offer of securities for sale in the United States and the PROPOSED SECURITIESmay not be offered or sold in the United States absent registration or an exemption from registration. EVRAZ GROUP S.A. does not intend to register any part of the PROPOSED offering under the applicable securities laws of the United States or to conduct a public offering of SUCH SECURITIES in the United States.

Goldman Sachs International, ING Bank N.V., London branch AND VTB Capital plc WILL NOT BE RESPONSIBLE FOR PROVIDING ADVICE IN RELATION TO THE PROPOSED SECURITIES.

THIS ANNOUNCEMENT IS DIRECTED ONLY AT PERSONS WHO (I) ARE OUTSIDE THE UNITED KINGDOM OR (II) HAVE PROFESSIONAL EXPERIENCE IN MATTERS RELATING TO INVESTMENTS FALLING WITHIN ARTICLE 19(5) OF THE FINANCIAL SERVICES AND MARKETS ACT 2000 (FINANCIAL PROMOTION) ORDER 2005 (THE "ORDER") OR (III) ARE PERSONS FALLING WITHIN ARTICLE 49(2)(A) TO (D) ("HIGH NET WORTH COMPANIES, UNINCORPORATED ASSOCIATIONS ETC") OF THE ORDER OR (IV) TO WHOM THIS ANNOUNCEMENT MAY OTHERWISE BE DIRECTED WITHOUT CONTRAVENTION OF SECTION 21 OF THE FINANCIAL SERVICES AND MARKETS ACT 2000 (ALL SUCH PERSONS TOGETHER BEING REFERRED TO AS "RELEVANT PERSONS"). THIS ANNOUNCEMENT MUST NOT BE ACTED ON OR RELIED ON BY PERSONS WHO ARE NOT RELEVANT PERSONS. ANY INVESTMENT OR INVESTMENT ACTIVITY TO WHICH THIS ANNOUNCEMENT RELATES IS AVAILABLE ONLY TO RELEVANT PERSONS AND WILL BE ENGAGED IN ONLY WITH RELEVANT PERSONS.

The information contained IN THIS ANNOUNCEMENT does not contain or constitute an offer, or an invitation to make offers, sell, purchase, exchange or transfer any securities in the Russian Federation or to or for the benefit of any Russian person or any person in the Russian Federation, and does not constitute an advertisement of any securities in the Russian Federation. EVRAZ GROUP S.A.'S securities have not been, nor will be, admitted to public placement and/or public circulation in the Russian Federation and may not be offered to any person in the Russian Federation except as provided by Russian law.

A COPY OF THE PROSPECTUS RELATING TO THESE SECURITIES MAY BE OBTAINED FROM THE OFFICES OF GOLDMAN SACHS INTERNATIONAL, PETERBOROUGH COURT, 133 FLEET STREET, LONDON EC4A 2BB ATTENTION: SYNDICATE DESK; ING BANK N.V. LONDON BRANCH, 60 LONDON WALL, LONDON EC2M 5TQ ATTENTION: SYNDICATE DESK; VTB CAPITAL, 14 CORNHILL, LONDON EC3V 3ND, ATTENTION: SYNDICATE DESK.

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For further information:

Media contact: Oleg Kuzmin VP, Corporate Communications +7 495 937 6871 media@evraz.com

Investor contact: Alexander Boreyko Director, Investor Relations +7 495 232 1370

ir@evraz.com

EVRAZ GROUP S.A. (EVRAZ) is a vertically-integrated steel, mining and vanadium business with operations in the Russian Federation, Ukraine, USA, Canada, Czech Republic, Italy and South Africa. The Company was ranked the 14(th) largest steel producer in the world based on crude steel production of 15.3 million tonnes in 2009. In 2010, the Company produced 16.3 million tonnes of crude steel and sold 15.5 million tonnes of steel rolled products. EVRAZ's internal consumption of iron ore and coking coal is covered by its mining operations. EVRAZ's consolidated revenues for the year ended 31 December 2010 were US$13,394 million and consolidated adjusted EBITDA amounted to US$2,350 million.

This information is provided by RNS

The company news service from the London Stock Exchange

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