UPDATE: FESCO signs $680 mln credit deal with Russia’s VTB Bank

(Adds details in last paragraph)

MOSCOW, Nov 7 (PRIME) -- Far Eastern Shipping Company (FESCO) has signed an agreement with Russia’s second largest bank VTB to open a U.S. $680 million credit line with the bank, the company said in a statement on Tuesday.

The company said that subsidiary Vladivostok Commercial Port will act as a borrower under the agreement, and that FESCO plans to use the money to redeem the major part of its financial debts.

The term of the credit line is five years, and the company plans to use the money to redeem debts under a restructuring deal for two Eurobonds that mature in 2018 and in 2020; to refinance current debt under a deal secured by bonds that the company bought back previously; and for other goals connected to restructuring of FESCO’s debt, the company said.

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