RLPC-TMK loan set to halve after Eurobond - banker

LONDON, July 28 (Reuters) - Russia's largest steel pipe maker TMK (TRMK.MM) (TRMKq.L) is likely to halve a syndicated bridge loan it agreed in May to $600 million from $1.2 billion after the borrower issued a $600 million Eurobond, a banking source said on Monday.

The loan was agreed to finance the acquisition of IPSCO's tubular companies and assets in the United States.

TMK said on Monday it had issued the Eurobond due in July 2011 and proceeds will be used partly to refinance the syndicated bridge loan. To read more, please double click on [ID:nL8581881].

As previously reported by Reuters Loan Pricing Corp (RLPC), the loan was funded on May 30 by mandated lead arrangers ABN AMRO, Bank of Tokyo-Mitsubishi UFJ, Barclays, BNP Paribas, ING, Natixis, Nomura and SMBC and pays a margin of 150 to 285 basis points (bps) over LIBOR.

The term of the facility is 12 months with a three-month extension option. The banker said it has yet to be decided whether the deal will be syndicated further.

The loan is secured by TMK subsidiaries Volzhsky Pipe Plant, Seversky Tube Works, Sinarsky Pipe Plant and Taganrog Metallurgical Works. (Reporting by Christopher Mangham; Editing by David Holmes)