Bloomberg News

Rusal Asks for Temporary Covenant Waiver on $4.75 Billion Loan

December 07, 2011

Dec. 6 (Bloomberg) -- United Co. Rusal, the world’s largest aluminum producer, has requested lenders temporarily waive covenants on a $4.75 billion pre-export finance loan it signed Sept. 29, according to a person with direct knowledge of the deal.

Rusal has approached its 14 banks, led by coordinators BNP Paribas SA and ING Bank NV, as the euro region debt crisis threatens to slow economic growth and after failing to include an investment project in financial projections, the person said, who declined to be identified as the talks are private.

The financing consists of a $3.75 billion term loan that pays initial interest of 285 basis points more than the London interbank offered rate, and a $1 billion bridge portion, according to data compiled by Bloomberg. A basis point is 0.01 percentage point.

Reuters reported on the waiver request earlier today. Rusal’s Moscow-based press office did not respond to a phone call seeking comment outside regular business hours.

--Editors: Faris Khan, Chapin Wright

To contact the reporter on this story: Stephen Morris in London at smorris39@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net


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