TMK-Artrom, part of the European division of oil and gas steel pipe suppliers TMK, has signed a five-year EUR 20 million loan agreement with Banca Comerciala Romana, member of Erste Group Bank AG.
The term loan of EUR 20 million is secured with a corporate guarantee issued by mother company OAO TMK and is aimed at improving the current debt structure of TMK-Artrom in line with strategic restructuring of credit portfolio.
BCR has also increased the existing facilities available for TMK-Artrom: the overdraft facility from EUR 18.4 million to EUR 20 million, up to three years tenor, and the discounting line for promissory notes from RON 5 million to RON 10 million, one year tenor.
In addition to the above, BCR provided a new treasury line of EUR 3 million, three years tenor, for the purposes of interest rate and FX risk hedging.
“We have a long-term cooperation with BCR. In 2005 we received a four-year investment loan of EUR 23.7 million aimed at construction and launching the modern pipe hot-rolling mill in TMK-ARTROM. Thus we have strengthened our positions in the European market and almost doubled our production capacities. With these new facilities we continue our long-term cooperation with the bank bringing it to the new strategic level,” said Adrian Popescu, CEO of TMK European Division.
TMK is a global manufacturer and supplier of steel pipes for the oil and gas industry, operating 24 production sites in the United States, Russia, Romania and Kazakhstan. Among global leaders, TMK has the largest steel pipe production capacity. The largest share of TMK’s shipments belongs to high margin oil country tubular goods (OCTG). In 2010, TMK’s pipe sales totaled approximately four million tonnes, shipped to customers in more than 65 countries.
TMK’s ordinary shares are listed on Russia’s MICEX and RTS stock exchanges. Its GDRs are traded on the London Stock Exchange, and its ADRs on the OTCQX International Premier trading platform in the U.S.