Business
Total Return Swap
Total Return Swap.
About this update from Ferrexpo Plc
[{"type":"text","content":"\n RNS Number : 1922B Ferrexpo PLC 21 October 2009 \n \n21 October 2009\n\nFerrexpo plc\n\nTotal Return Swap\n\n\nFerrexpo plc (\"Ferrexpo\") announces today that it has been informed by RPG Industries SE (\"RPGI\") that its wholly-owned subsidiary Wigmore Street Investments No.3 Limited (\"Wigmore\") has sold 70,500,000 Ferrexpo shares, equal to approximately 12% of the issued share capital, to J.P. Morgan Securities Ltd., Citigroup Global Markets U.K. Equity Ltd and Morgan Stanley & Co International plc in equal proportions, and has entered into Total Return Swap (\"TRS\") transactions with those institutions in respect of those shares. The TRS transactions have an average term of three years and provide Wigmore the right to elect to receive Ferrexpo shares in settlement of the swap at maturity (physical settlement).\n\nFollowing the transactions RPGI continues to have full economic exposure over 25% minus one share of Ferrexpo's outstanding share capital. Ferrexpo and RPGI enjoy a good working relationship which remains unchanged by these transactions. Miklos Salamon and Marek Jelinek will continue to serve as non-executive directors of Ferrexpo.\n\nFerrexpo is of the view that the transactions restore the proportion of Ferrexpo shares in public hands to approximately 25%, in line with LR9.2.15 of the Listing Rules.\n\nFor further information, please contact:\n\nFerrexpo: +44 207 389 8304Gavin Mackay\n\nPelham PR +44 207 337 1500 \nEvgeniy Chuikov\nJames Henderson\n \n\nNotes to Editors:\n\nFerrexpo is a Swiss headquartered resources company with assets in Ukraine, principally involved in the production and export of iron ore pellets, used in producing steel. Current output is over 9 million tonnes, most of which is exported to steelmakers around the world. The G...