TMK pays off convertible bonds

February 13, 2015. Pipe Metallurgical Company (TMK), one of the world’s leading OCTG producers, redeemed its convertible bonds (to be paid off in 2015) with 5.25% coupon yield, the company’s press service reports.

The bonds could be converted into TMK’s GDRs, each of which stand for four ordinary shares.

In order to pay off the bonds, TMK used the money obtained through its operational and financial performance, including a four-year U.S. dollar loan taken out from one of major Russian privately run banks.

The company isn’t planning to go through with a public offer of its 17,876,489 GDRs (which represent 71,505,956 ordinary shares, or 7.21% of TMK’s authorized capital) any time soon; the receipts will be kept as treasury stock.

TMK has no more international financial obligations to be met before 2018.


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