Interpipe pipe and Wheel Company has signed an agreement on the restructuring of its credit portfolio worth USD 887 million which foresees payment of the principal loan until 2017.
The company said "The completion of the restructuring would allow the company to focus on the development of new market and upgrade of production facilities, in particular, the launch of the Dniprostal electric smelter, which will "be the largest electric steel-smelting complex in Eastern Europe.”
As a part of the restructuring banks provide additional financing worth USD 136 million o the company to realize an investment program of Interpipe. In addition, Interpipe shareholders increased charter capital by USD 65 million.
The press release issued on Monday says that the company also got a chance to raise additional funds to replenish circulating capital, while the company took liabilities in operations and investing until the level of its debt reaches the agreed parameters.
Mr Oleksandr Cherniavsky Interpipe CFO said "The completion of the restructuring is evidence of trust of international financial institutions to Interpipe and its shareholders and confirms the fact that Interpipe is still a reliable partner with a good credit history and reputation of a responsible borrower."
The press release says that the new credit payment schedule and additional financing make the financial state of Interpipe more stable before the scheduled launch of Dniprostal with the production capacity of 1.32 million tonnes per year in 2012.
Mr Oleksandr Kirichko Interpipe CEO said "With the launch of Dniprostal the company will finish the formation of its vertically-integrated structure: from collection and processing of scrap metal through steel smelting and pipe and wheel production to servicing of clients on key markets."
He said that the launch of the new facility, investment in which came to USD 700 million will allow the company to reduce its dependability on foreign suppliers and provide 80% of work stock for seamless pipes and 100% of work stock for wheels.
He added that Interpipe top priorities for coming years include the expansion of its presence on the North America and Middle East markets.
