* Rusal to roll two debt facilities into one
* Sees aluminium prices rebounding
* Rusal shares up 73 pct this year
(Adds Rusal comment, aluminium outlook)
MELBOURNE, Aug 4 Russia's Rusal said
on Monday it has won approval from all its lenders to
restructure more than $5 billion in loans, which will help it
weather a weak aluminium market.
The agreement to roll two facilities worth $4.75 billion and
$400 million into one comes after United Company RUSAL Plc, the
world's largest aluminium producer, avoided default in July when
it won an extension on a debt deadline to October.
"Agreements reached with our lenders will allow us to
strongly improve the company's debt profile and maintain a
sustainable cash position in anticipation of an aluminium market
rebound," Rusal Deputy CEO Oleg Mukhamedshin said in a
With support from all its lenders to restructure the $5.15
billion in pre-export finance facilities, Rusal said it should
no longer need to go through a court procedure that it announced
in June to secure a debt deal as a few of its lenders were at
the time withholding approval.
The company had $10.3 billion in net debt as of March 31,
which it has been struggling to manage due to a slump in
aluminium prices amid a supply glut stoked by huge production
growth in China.
Prices have started to rebound this year, up 18 percent off
a 4-1/2-year low hit in February, as several producers outside
China have shut aluminium smelters over the past two years and
demand, particularly from U.S. automakers, has picked up.
A Reuters poll found the aluminium market outside China is
expected to move into deficit for the first time in nine years
in 2015 following the production cuts and an Indonesian ore
Thanks to the pick-up in aluminium prices and a sharp jump
in nickel prices, shares in Rusal, which owns a 28 percent stake
in Russia's Norilsk Nickel, have rocketed 73 percent
(Reporting by Sonali Paul; Editing by Richard Pullin)