Magnitogorsk Iron & Steel seeks consents to amend 2024 notes

By Marisa Wong

Los Angeles, June 6 – PJSC Magnitogorsk Iron & Steel Works (MMK) announced the start of a consent solicitation for the $500 million 4 3/8% notes due 2024 (ISIN: XS1843434959, US553142AA88) issued by MMK International Capital DAC and guaranteed by Magnitogorsk Iron & Steel.

The issuer and guarantor are asking noteholders to agree to some amendments and waivers to the terms of the notes for the purposes of ensuring the due and punctual performance in relation to the notes and in order to protect the rights and interests of the noteholders, according to a notice on Monday.

MMK explained that due to blocking restrictions introduced by the European Union and the United Kingdom, breakdown in transaction functionality between the European Union and Russian clearing systems and currency controls introduced by the Russian authorities, interest payments of interest on the 2024 notes may get blocked, frozen or delayed for an uncertain period of time by the clearing systems or other entities processing those payments.

MMK said that (i) it has sufficient financial resources and is making every effort to make interest payments due to the noteholders as soon as processing can be assured; and (b) for the purposes of receiving the licenses from the relevant U.S., U.K. and Irish authorities that are required to ensure the due exercise of rights and obligations in relation to the notes compliant with all applicable sanctions, it is now preparing documents for filings with the relevant authorities.

MMK is encouraging noteholders to liaise with its investor relations department (ir@mmk.ru) or Rybalkin, Gortsunyan, Dyakin and Partners Advocates Bureau (MMKconsentsolicitation2022@rgd.legal) directly to obtain a copy of the consent solicitation memorandum.

The iron and steel company is based in Magnitogorsk, Russia.

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