TMK Prolongs VTB Loan Facility
TMK, one of the world’s largest oil and gas pipe producers and the market leader of the Russian pipe industry, today announced that it has achieved agreements with VTB Bank on prolongation the maturity of its USD 450 mln. facility up to three years.
The facility, used to fund a partial buyback of TMK’s 2011 Loan participation notes, was initially provided in August 2009 for a period of one year and included an option to extend the maturity for up to 5 years. On February 2, 2010, VTB Bank agreed to prolong the facility to provide for a maturity of three years from the initial extension, with an option to extend the maturity up to five years from the initial extension. The achieved agreements highlight the positive relationship between TMK and VTB Bank as well as underline a mutual interest for future collaboration.
“TMK continues to optimize its loan portfolio while emphasising the use of long-term instruments. As a next logical step in the development of our mutually beneficial partnership with VTB Bank, this prolongation significantly improves the maturity structure of the Company’s loan portfolio,” commented TMK CEO, Alexander G. Shyryaev.