Last Updated April 24, 2008
Russian aluminium producer UC Rusal has completed its acquisition of a 25% plus one share stake in Norilsk Nickel from Onexim group. "We are delighted that our acquisition of 25% plus one share of Norilsk Nickel has been successfully completed. We have become a shareholder in one of the world's largest producers of nickel, palladium, copper and platinum and have laid a solid foundation for the development of UC Rusal as a diversified metals and mining corporation with huge growth potential,” Alexander Bulygin, CEO, of UC Rusal.
UC Rusal has selected four candidates to the board of directors of Norilsk Nickel - Victor Vekselberg, Oleg Deripaska and Alexander Bulygin, as well as Tye Burt, as an independent director. The election of these candidates to the board will be considered at Norilsk's annual shareholders meeting in June 2008.
Under the terms of the deal, Onexim will receive a 14% stake in UC Rusal, as well as a cash component. Onexim will also gain representation on the UC Rusal board of directors.
The cash portion of the deal has been supported by a US$4.5bn syndicated bridge facility arranged by ABN Amro, Barclays Capital, BNP Paribas, Calyon, Credit Suisse, Goldman Sachs, ING, Merrill Lynch, Morgan Stanley, Natixis and UniCredit Group.
Mandates to arrange and underwrite the facility were issued to initial mandated lead arrangers ABN Amro, BNP Paribas, Credit Suisse and Merrill Lynch in November 2007. Barclays Capital, Calyon, ING, Natixis and HVB then joined as additional MLAs. Goldman Sachs and Morgan Stanley also joined as senior lead arrangers.
The initial margin being paid on the deal is 100 basis points over Libor per year, rising to 125bp per year after three months, before increasing to 150bp in six months, finally increasing to 200bp per year thereafter. Senior syndication was signed in March. (Click here to read previous coverage on this syndication in GTR eNews, March 2008)
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