Uralchem reaches refinancing agreements

Moscow-UralChem OJSC on March 26 announced that it has reached agreement with its creditors on the refinancing of US$333 million in debt payable in 2009. New agreements reached with UniCredit Bank, Raiffeisenbank, and Sberbank of Russia specify debt repayments in 2010-2012 instead of 2009. The company said such debt refinancing agreements with the banks “have become an important milestone in the process of optimizing [its] financing obligations.” Together with efficiency improvement and cost-reduction programs, Uralchem said the refinancing agreements will allow it “to overcome the consequences” of the world economic and financial crisis. “After the repayment pattern has changed, the amount payable in 2009 will be US$130 million, which is a comfortable and acceptable level for Uralchem,” said Anton Vishanenko, CFO of the company. “New agreements with the banks demonstrate their confidence in further sustainable development of the mineral fertilizer industry, reliability of [Uralchem’s] investment plans, and the effectiveness of its anti-crisis management. We are confident of the future effective and mutually beneficial cooperation with our creditors.”