Narrative
Full Description
Project narrative
On September 1, 2011, a syndicate of nine banks — including ICBC (London) plc — entered into a $420 million USD syndicated revolving pre-export finance (PxF) facility agreement with Ferrexpo AG — a Switzerland-incorporated subsidiary of England and Wales-incorporated, but Switzerland-headquartered, iron ore mining and trading company Ferrexpo plc, which has its operating companies in Ukraine — and Ferrexpo Finance plc — an England and Wales-incorporated wholly owned finance subsidiary of Ferrexpo plc — for general corporate purposes. This loan carried a maturity period of five years and an interest of LIBOR plus a margin of 225 basis points (bps) on drawn amounts. This loan carried an amortizing repayment schedule over its final 24 months and a final maturity date of July 31, 2016; it would be available until August 31, 2014, thereafter reducing in 24 equal amounts of about $17.5 million USD each. The proceeds were to be used for general corporate purposes, namely providing Ferrexpo with flexibility to develop its project pipeline. This loan was both guaranteed by Ferrexpo entities and secured (collateralized) against various rights and assets. OJSC Ferrexpo Poltava Mining (FPM) — a Ukraine-incorporated subsidiary of Ferrexpo plc that serves as its principal operating asset and production facility — and LLC Ferrexpo Yeristovo Mining (FYM) (also known as LLC Ferrexpo Yeristovo ((GOK) or (YGOK)) — a Ukraine-incorporated subsidiary of Ferrexpo plc — provided an unlimited financial and performance suretyship (guarantee) for both of the borrower's obligations. Ferrexpo plc provided a parent company guarantee. Ferrexpo AG and Ferrexpo Middle East FZE — an United Arab Emirates-incorporated wholly owned subsidiary of Ferrexpo plc for the sale of iron ore pellets — pledged their bank accounts held with ING Bank N.V. and ICBC (London) plc that all proceeds from the sale of iron ore pellets under certain contracts were repaid into as security. FPM, Ferrexpo AG, and Ferrexpo Middle East pledged all of their rights under certain contracts for the export of iron ore pellets as security. Ferrexpo AG and Ferrexpo Midlde East also pledged all their rights under certain contacts for the sale of iron ore pellets and their rights under certain related credit support documents as security. ICBC (London) contribute $50.00 million USD to the syndicate. In addition to ICBC (London), the following eight lenders contributed the respective amounts to the loan syndicate: ING Bank N.V. ($75.00 million USD), UniCredit Bank Austria AG ($75.00 million USD), Société Générale Corporate & Investment Bank (SGCIB) ($50.00 million USD), ABN AMRO Bank N.V. ($30.00 million USD), Citibank N.A. ($15.00 million USD), Credit Suisse AG ($30.00 million USD), WestLB AG ($65.00 million USD), and the London Branch of JPMorgan Chase Bank, N.A. ($30.00 million USD). ING, UniCredit, and SGCIB served as Coordinating Mandated Lead Arrangers. ING served as facility agent. UniCredit and SGCIB served as documentation co-ordinator and SG. ICBC and WestLB served as bookrunners. ICBC also served as credit support account agent. UniCredit, ABN Amro, Credit Suisse, JPMorgan, and Citibank served as participants. On October 7, 2011, the borrowers fully drew down the facility. As of September 30, 2013, $420 million USD was outstanding under the facility. As of September 30, 2014, $332.5 million USD was outstanding under the facility. On July 29, 2016, the borrowers repaid the remaining outstanding balance $420 million USD PxF after amortizing the loan in equal installments over the prior 24 months.