November 14, 2012 / 9:32 AM / in 5 years

Russia Evraz seeks amendments to bond covenants

MOSCOW, Nov 14 (Reuters) - Russia’s debt-laden largest steelmaker Evraz has asked the holders of its $750 million bond maturing in 2015 to approve the removal of a financial requirement on the bond.

Evraz “is seeking approval... of the holders of the notes to remove a covenant requiring the company to maintain the net leverage ratio at or below a specified level,” the company said in a statement.

Evraz, part-controlled by billionaire Chelsea soccer club owner Roman Abramovich, reported a net debt of $6.07 billion as of June 30, down from $6.44 billion at the end of 2011.

The company said earlier this year that it had agreed amendments to its $950 million syndicated structured credit facility maturing in 2015, as well as a number of bilateral facilities.

Russian steelmakers, who have heavily invested in production before the 2008 recession, had to borrow cash to support their operations, after economic slowdown crippled steel markets.

Evraz has posted a first-half net loss of $50 million earlier this year, down from a profit of $263 million last year.

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