OREANDA-NEWS. September 18, 2012. HMS Group (LSE: HMSG), the leading Russian pump manufacturer and provider of flow control solutions and related services in Russia and the CIS, announces that it has signed a loan agreement of Rub 3 bn with 3-year maturity with VTB, one of the largest Russian financial institutions.

The raised funds will be utilized to refinance existing credit facilities with residual maturities less than 1 year. As a result, HMS will significantly improve its liquidity position and regain the strong liquidity cushion.

On the planned debt redemption, a share of long-term debt to constitute 87% that is in line with HMS debt policy of maintaining at least two-thirds of the debt as long term, while the repayment schedule (pro-forma) is expected to be as follows:

Year

Oct-Dec, 2012

Jan-Sep, 2013

Oct-Dec, 2013

2014

2015

Total

Debt to be redeemed, Rub mn

468

1,338

691

4,526

6,493

13 516

The Group has also signed a 3 year revolving credit facility agreement with Sberbank of Rub 500mn, which can be utilized for general purposes, including working capital financing and debt refinancing.

As a result, current available undrawn debt facilities amounts Rub 2.2 bn that exceeds short-term debt of Rub 1.8 bn with coverage ratio of 1.2.

HMS Group is the leading pump manufacturer and provider of flow control solutions and related services to the oil and gas, nuclear and thermal power generation and water utilities sectors in Russia and the CIS. The HMS Group’s products are mission-critical elements of projects across a diverse range of industries. It has participated in a number of large-scale infrastructure projects in Russia, including providing pumps and modular equipment to the Vankor oil field and pumping stations on recent trunk pipelines projects linking Russia’s core oil producing areas to export ports on the Pacific Ocean and Baltic Sea. The Group reported revenues of RUB 7.3 billion, adjusted EBITDA of RUB 1.4 billion and profit of RUB 485 million for the 3 months ended March 31, 2012. The HMS Group’s global depositary receipts (“GDRs”) are listed under the symbol “HMSG” on the London Stock Exchange.