NMLK’s Acquisition Loan Canceled

LONDON (Reuters) – Russian steelmaker Novolipetsk Steel (NLMK) (NLMKq.L: Quote, Profile, Research, Stock Buzz) (NLMK.MM: Quote, Profile, Research, Stock Buzz) cancelled a $2 billion loan following the company’s decision to terminate its acquisition of U.S. rival John Maneely Co from buyout firm Carlyle Group.

The 364-day syndicated bridge loan, which launched to syndication in August via bookrunners and underwriters Deutsche Bank, Merrill Lynch and Societe Generale, was to be used to back the acquisition but has been in doubt since October.

Syndication of the facility was put on hold last month when Carlyle sued Novolipetsk to complete the $3.5 billion acquisition, claiming the Russian group had breached its obligations to close the transaction.

NLMK also said in its statement on Monday that the litigation brought by John Maneely’s parent, DBO Holdings, owned by Carlyle, continues.

DBO Holdings said in a statement on Friday the Russian steel producer had terminated the acquisition.

(Reporting by Christopher Mangham; Editing by David Holmes)