Severstal sets bondholder call for 5.9% loan participation notes

By Marisa Wong

Los Angeles, Aug. 1 – PAO Severstal announced the time of the bondholder call for its 5.9% series 3 loan participation notes due 2022 (ISIN: XS0841671000, US85805RAB42).

A conference call will be held at 9 a.m. ET on Aug. 2, according to a notice on Monday.

The company is recommending that participants dial the applicable number 10 minutes before the start of the conference call to avoid long call waiting times.

To join the conference call, participants can call the following numbers (local access):

• For the United Kingdom, +44 20 3984 9844;

• For the United States, 718 866-4614;

• For Germany, +49 30 25 555 323; and

• For Russia, +7 495 283 98 58.

The conference ID is 314887.

Vladimir Zaluzhsky and Nikita Klimantov, investor relations, (+7 495 926 77 66, vladimir.zaluzhsky@severstal.com, na.klimantov@severstal.com) and Anastasia Mishanina, public relations, (+7 495 926 77 66, anastasia.mishanina@severstal.com) may be contacted for more information.

Ongoing consent bid

As announced on July 13, the company is seeking consents from noteholders of the $634,051,000 of outstanding 5.9% series 3 loan participation notes due 2022 to amend the terms of the notes in response to international sanctions.

Severstal is seeking consents to pay noteholders in rubles, defer an interest payment and redeem the loan and notes early.

Severstal is also seeking consent to defer the April 2022 interest and coupon to the payment date with no accrued default interest or similar payment and/or being payable with respect to any amount of the April 2022 interest and/or coupon. To date, the interest under the loan and under the notes due on April 17 have not been paid and remain outstanding.

Lastly, Severstal is seeking consent for an early redemption of the loan and the notes then outstanding at par with accrued interest on Aug. 29.

The written resolution will become effective if signed by or on behalf of at least two-thirds of the holders of the principal amount of the outstanding notes.

The early redemption is independent of the other proposals and will only become effective if the amended payment and interest deferral proposals also become effective.

The loan participation notes were issued by Steel Capital SA on Oct. 15, 2012 for the purpose of funding a loan to Severstal. The original issue size was $750 million.

Severstal is a steel and mining company based in Cherepovets, Russia.

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