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The eBearing News
September 26, 2006
EBC Floats $150 Million Bond Offering
copyright © 2006 eBearing Inc.
European Bearing Corp. (EBC, Russian Federation) announced plans to sell USD $150 million worth
of Eurobond credit-linked notes, maturing October 2010.
EBC is the largest Russian bearing manufacturer, with 37% of the overall market. The company
has six bearing plants -- five in Russia and one in Kazakhstan. Its primary strengths derive from
guaranteed, closed market sales -- including a 95% market share of Russia's railroad bearings
and 98% of Russia's high-precision aerospace bearings.
Together, rail and precision aerospace accounted for approximately $163 million of EBC's
$250 million total sales in 2005.
The lead manager for the new bond issue is Russia's MDM Bank, although secondary players
are from Cyprus and the Netherlands.
MDM has issued a highly detailed 30-page research report detailing EBC's operations,
the Russian bearing industry and related market information, dated September 2006:
EBC research report by MDM Bank
[PDF; 30 pages]
MDM bank is arranging the sale of the notes, which will
carry coupons of 9.5% and 9.74%.
This issuance follows the $35 million in three-year bonds floated in October 2005,
carrying coupons of 8.75% in 2006 and 9.35% in 2007. Those bonds financed the late 2005 acquisition
of Samara Aviation Bearing Plant.
The new bond issue will reportedly allow EBC to retire all of its more expensive bank loans
and reduce interest payments significantly. The company may also consider strategic acquisitions,
particularly in automotive-related markets where it is weakest.
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- by Bruce A. Carr
from individual research,
tips and commercial sources.
Unauthorized reproduction is prohibited.
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eBearing.com ... for everything that moves™
Entire contents Copyright 1999-2008, eBearing Inc. All rights reserved.
eBearing.com and "... for everything that moves" are registered
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eBearing.com ... for everything that moves™
Entire contents Copyright © 1999-2008, eBearing Inc. All rights reserved.
eBearing.com and "... for everything that moves" are registered trademarks of eBearing Inc.
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