SUEK secures US$700 million syndicated pre-export loan facility

The senior stage of the syndication closed on September 8, 2010 through a group of Mandated Lead Arrangers and Bookrunners, including leading international banks, specifically, BNP Paribas, The Bank of Tokyo-Mitsubishi UFJ, Ltd., Citi (Communication Agent), Commerzbank Aktiengesellschaft, Credit Agricole Corporate and Investment Bank, ING Bank N.V. (Coordinating MLA and Facility Agent), Banca Intesa, Rabobank International, London Branch, Reiffeisen Zentralbank Osterreich AG, Viena, Societe Generale Corporate & Investment Banking, JSC "Banque Societe Generale Vostok" (Coordinating MLA and Documentation Agent), Sumitomo Mitsui Banking Corporation, UniCredit Bank AG and ZAO UniCredit Bank.
The 5-year facility carries an initial margin of 325 basis points and is secured by the company's export revenues. The facility will be used primarily for refinancing of existing debt and also for financing of general working capital needs.
Banks' support of the facility was very strong at the senior stage with 12 banks committing a total US$1.2 billion. General stage of syndication is expected to be launched shortly and during this stage facility amount may be increased up to US$900 million.
SUEK is the largest coal producer and exporter in Russia and one of the largest in the world in terms of volume with production of 88 mt of thermal coal and revenues of US$4.7 billion in 2009.  The Company is the world's 11th largest coal producer and its reserve base of 5.8bt was the 3rd largest globally compared to its global thermal coal peers as of January 1, 2010.