Commitments on a US$800mn syndicated term loan facility for Russian gas producer Novatek are due in by the end of March, with signing scheduled for early April.
The three-year facility is being arranged by mandated lead arrangers and bookrunners BNP Paribas, Calyon, Citi and SMBC Europe. The facility is fully underwritten by the MLAs.
Novatek is using the funds to finance capital expenditure and refinancing existing debt. The facility pays an initial margin of 1.25% over Libor per year for the first 18 months, rising to 1.50% per year from then on. As well as a three year tenor, it also features an 18-month grace period.
The deal draws to a close as news emerges that Gazprombank is to help finance a project led by Novatek to build a power plant in Siberia.
Novatek is Russia's largest independent gas producer and the second-largest natural gas producer in Russia after Gazprom.
The company has been listed on the London Stock Exchange since its IPO in July 2005, and has been involved in the exploration, production and processing of natural gas and liquid hydrocarbons since its establishment in 1994.
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