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Thursday, 3 December 2009, 18:45 HKT/SGT
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Source: RUSAL
UC RUSAL Signs Comprehensive Debt Restructuring Deal

MOSCOW, Dec 3, 2009 - (ACN Newswire) - UC RUSAL, the world's largest aluminium and alumina producer, announces that the company has signed all the necessary documents on the comprehensive restructuring of its debt of USD 16.8 bln. The signing of the restructuring deal reinforces the competitive position of the company and allows it to concentrate on implementing its new strategic objectives.

The restructuring of USD7.4 billion debt to international lenders will be split into two phases. During the initial four year period, principal repayments will be made on a "pay-if-you-can" basis predicated on the performance of the business, thereby ensuring the full sustainability and integrity of its operations. Interest will be paid partly in cash, at a rate ranging from LIBOR + 1.75% to 3.5% depending on the debt level, with the remaining portion to be capitalised. The second phase of the restructuring will involve the refinancing of the remaining debt by current lenders for an additional three years. Such refinancing will be at RUSAL's option, as it may opt for an alternative refinancing of the debt should this prove more favourable to the company.

RUSAL has also signed an agreement on the restructuring of USD2.1 billion of debt with its Russian lenders, including VTB, Gazprombank and Sberbank of Russia, which will have a four year tenor, with the possibility to extend this for a further three years should it be required. The terms of this restructuring are similar to that of the international lenders. The annual interest rate for these loans will be reduced to 8-9%.

RUSAL has also signed an agreement with ONEXIM to restructure its USD2.7 billion debt. It has been agreed to convert USD1.82 billion of debt into a 6% shareholding in RUSAL. The remaining USD880 million of debt will be restructured on the same terms as applicable to the international lenders, with the accumulated interest thereon to be paid in cash. The agreement with ONEXIM on converting the part of the debt into RUSAL's shares will reduce RUSAL's debt to USD14.9 billion and cut the debt servicing costs.

A total of more than 70 lenders took part in the restructuring of about 50 credit agreements.

RUSAL has periodical debt reduction targets in place and will seek to repay a total of USD5 billion of debt owed to all lenders by the fourth quarter of 2013.

Commenting on the signing of the restructuring deal Oleg Deripaska, RUSAL's CEO, said: "The signing of RUSAL's debt restructuring deal closes the chapter on a project of unprecedented size and complexity. All the parties involved in it have passed this test of the world's economic slowdown and we want to thank our lenders and shareholders for their support that resulted in the deal which sets a major benchmark for the international and Russian businesses. RUSAL has passed a major threshold, confirmed its leadership as a sustainable global business and is ready to focus on implementing its new strategic objectives."

Contact:
Vera Kurochkina
+011 7 495 720 5170
Vera.Kurochkina@rusal.com


Topic: Press release summary
Source: RUSAL

Sectors: Metals & Mining, Daily Finance, Daily News
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