TIDMPOG
RNS Number : 8836V
Petropavlovsk PLC
08 November 2017
08 November 2017
Petropavlovsk PLC
Announcement of Pricing of Senior Notes
THIS ANNOUNCEMENT IS FOR INFORMATION PURPOSES ONLY, AND DOES NOT
CONSTITUTE OR FORM PART OF ANY OFFER OR INVITATION TO SELL OR
ISSUE, OR ANY SOLICITATION OF AN OFFER TO PURCHASE OR SUBSCRIBE
FOR, ANY SECURITIES. NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION
IN OR INTO THE UNITED STATES OF AMERICA, OR TO ANY PERSON LOCATED
OR RESIDENT IN, THE UNITED STATES OF AMERICA, OR ANY OTHER
JURISDICTION WHERE IT IS UNLAWFUL TO RELEASE, PUBLISH OR DISTRIBUTE
THIS ANNOUNCEMENT
Petropavlovsk 2016 Limited (the Issuer) today announces that it
has priced its offering of US$500 million 8.125 per cent.
guaranteed notes due 14 November 2022 (the Notes) at an issue price
of 100 per cent. The Notes will bear interest at a rate of 8.125
per cent. per annum from and including 14 November 2017. Interest
on the Notes will be payable semi-annually in arrear, on 14 May and
14 November in each year commencing on 14 May 2018. The Notes are
guaranteed by Petropavlovsk PLC (the Company), JSC Pokrovskiy
Rudnik, LLC Albynskiy Rudnik and LLC Malomirskiy Rudnik.
The Notes are expected to be issued on or about 14 November
2017, subject to the satisfaction of various customary closing
conditions precedent.
The Notes have been assigned an expected rating of B- (EXP) by
Fitch Ratings Limited (Fitch). They have been assigned an expected
rating of B- and placed on CreditWatch Positive by Standard &
Poor's Rating Services, a division of The McGraw-Hill Companies,
Inc. (S&P). The Company has been assigned an expected rating of
B- (EXP) with a Stable Outlook by Fitch. It has been assigned a
rating of B- and placed on CreditWatch Positive by S&P. Fitch
and S&P are established in the European Community and are
registered under Regulation (EC) No 1060/2009, as amended.
The Company intends to use the net proceeds from the offering of
the Notes to substantially refinance the loans provided pursuant to
the banking facilities provided by Sberbank and VTB Bank.
Application has been made to the Irish Stock Exchange for the
Notes to be admitted to the official list of the Irish Stock
Exchange and to trading on the Global Exchange Market of the Irish
Stock Exchange.
Citigroup Global Markets Limited, J.P. Morgan Securities plc,
SIB (Cyprus) Limited and VTB Capital plc are acting as Joint Lead
Managers.
Ian Ashby, Chairman, Comments:
"The successful pricing of the issue demonstrates the market's
confidence in our development projects and completion will
significantly improve the capital profile of the Group."
Andrey Maruta, CFO, Comments:
"As the proceeds of the offering will be used to refinance the
bank debt, this transaction will allow us to extend the Company's
debt maturity profile and to optimise the amortisation schedule,
thus providing operational and financial flexibility."
Enquiries
For more information, please visit www.petropavlovsk.net and
www.ircgroup.com.hk or contact:
Petropavlovsk PLC Maitland
Alya Samokhvalova Neil Bennett
Grace Hanratty James Isola
+44 (0) 20 7201 8900 +44 (0) 20 7379 5151
TeamIR@petropavlovsk.net Petropavlovsk-Maitland@maitland.co.uk
About Petropavlovsk
Petropavlovsk is one of Russia's leading gold mining companies.
As at 30 September 2017, the Company had
produced approximately 6.6Moz of gold.
At this time, Petropavlovsk is in the construction phase of a
state of the art pressure oxidation facility to process the
Company's substantial refractory resource base. The Company's
combined 3,600km2 license holding has untapped resource potential.
The Company is a leading employer and contributor to the
development of the local economy in the Amur region, Russian Far
East, where it has operated since 1994.
Petropavlovsk is a shareholder (31.1%) of IRC Limited and is the
guarantor of the US$340 million project finance facility US$234
million principal outstanding as at 31 December 2016). IRC is a
vertically integrated iron ore producer and developer in the
Russian Far East and Northeastern China. IRC is listed on the Hong
Kong Stock Exchange (ticker: 1029.HK).
Petropavlovsk is listed on the Main Market of the London Stock
Exchange (ticker POG:LN).
Nothing in this announcement constitutes an offer of any
securities in the United States of America (U.S.). The securities
referred to in this announcement have not been and will not be
registered under the U.S. Securities Act of 1933, as amended
(Securities Act) or with any securities regulatory authority of any
state or other jurisdiction of the U.S. and may not be offered or
sold within the U.S. or to, or for the account or benefit of, U.S.
persons (as defined in Regulation S under the Securities Act),
except pursuant to an exemption from, or in a transaction not
subject to, the registration requirements of the Securities
Act.
This announcement is not being reviewed or approved by an
authorised person for the purposes of Section 21 of the Financial
Services and Markets Act 2000. Accordingly, it is not being
distributed to, and must not be passed on to, the general public in
the United Kingdom (UK). This announcement is only being made to
those persons in the UK falling within the definition of investment
professionals (as defined in Article 19(5) of the Financial and
Services and Markets Act 2000 (Financial Promotion) Order 2005 (the
Financial Promotion Order) or persons falling within Article
49(2)(a) ("high net worth companies, unincorporated associations,
etc") of the Financial Promotion Order, including existing members
and creditors of the Issuer, or any other persons to whom it may
otherwise lawfully be made under the Financial Promotion Order.
This announcement is not an offer, or an invitation to make
offers, to sell, exchange or otherwise transfer any securities in
the Russian Federation to or for the benefit of any Russian person
or entity and does not constitute an advertisement or offering of
securities in the Russian Federation within the meaning of Russian
securities laws. This announcement has not been, nor shall be
distributed to the public in the Russian Federation. Information
contained in this announcement is not intended for any persons in
the Russian Federation who are not "qualified investors" within the
meaning of Article 51.2 of the Federal Law No. 39-FZ "On the
Securities Market" dated 22 April 1996, as amended (the Russian
QIs) and must not be distributed or circulated into the Russian
Federation or made available in the Russian Federation to any
persons who are not Russian QIs, unless and to the extent they are
otherwise permitted to access such information under Russian
law.
This announcement contains "forward-looking statements" that are
based on estimates and assumptions and are subject to risks and
uncertainties. Forward-looking statements are all statements other
than statements of historical fact or statements in the present
tense, and can be identified by words such as "targets", "aims",
"aspires", "assumes" "believes", "estimates", "anticipates",
"expects", "intends", "hopes", "may", "would", "should", "could",
"will", "plans", "predicts" and "potential", as well as the
negatives of these terms and other words of similar meaning. The
forward-looking statements in this announcement are made based upon
the Company's estimates, expectations and beliefs concerning future
events affecting the Company and are subject to a number of known
and unknown risks and uncertainties. Such forward-looking
statements are based on numerous assumptions regarding the
Company's present and future business strategies and the
environment in which it will operate, which may prove not to be
accurate. The Company cautions that these forward-looking
statements are not guarantees and that actual results could differ
materially from those expressed or implied in these forward-looking
statements. Undue reliance should, therefore, not be placed on such
forward-looking statements. Any forward-looking statements
contained in this announcement apply only as at the date of this
announcement and are not intended to give any assurance as to
future results. The Company will update this announcement as
required by applicable law, including the Prospectus Rules, the
Listing Rules, the Disclosure Guidance and Transparency Rules, and
any other applicable law or regulations, but otherwise expressly
disclaims any obligation or undertaking to update or revise any
forward-looking statement, whether as a result of new information,
future developments or otherwise.
This announcement contains inside information for the purpose of
Article 7 of Regulation (EU) No 596/2014
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCGLBDBBUGBGRI
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