Novolipetsk Steel gives updates on solicitations for 2023, 2026 notes

Chicago, Sept. 12 – Novolipetsk Steel (NLMK) provided an update regarding its consent solicitation for two series of notes from meetings that were scheduled for Sept. 9, according to multiple releases.

Issuer Steel Funding DAC was seeking to amend the documents for its $700 million 4½% loan participation notes due 2023 (ISIN: XS1405775617, US85812PAC77), $433,609,000 of which is outstanding; and €500 million 1.45% loan participation notes due 2026 (ISIN: XS2346922755, XS2346922912), all of which is outstanding.

The meeting for the extraordinary resolutions for the 2023 notes was successful, and both an amendment and a waiver passed.

The meeting for the 2026 notes lacked a quorum. An adjourned meeting will be held at 6 a.m. ET on Sept. 26.

The voting deadline is 6 a.m. ET on Sept. 24.

Amendments

The issuer was proposing to amend the notes to enable NLMK to make direct payments to the noteholders in Russian depositaries, waive payments under the notes held by NLMK or other members of its group and cancel notes held by the group without the need to deliver them to the registrar. Currently, delivery is in many instances impossible if the notes are held with a Russian depositary, the company explained.

Other proposed amendments are more technical and are aimed at ensuring that the issuer is able to operate and service its debt if certain services cease to be available to it or if it or NLMK is unable to make payments in the currency of the notes.

Additionally, in order to have more time to implement the above proposals before the due dates for interest payments under certain notes, by way of separate resolutions, the issuer has been seeking from the holders of the 2023 notes, 2024 notes (successfully) and 2026 dollar-denominated notes a consent to waive any breaches of note documentation resulting from the issuer’s failure to pay interest on the relevant notes on or before Dec. 31.

Details

No consent fee is payable in connection with the consent solicitations.

Copies of all announcements, notices and press releases, as well as some documents related to consent solicitations are available at https://www.i2capmark.com/event-details/69/ Holder/nlmk-steel-funding-dac-consent-solicitation. The company made some clarificatory amendments on Aug. 12 which can be found on the site.

Questions should be directed to the information and tabulation agent, i2 Capital Markets (nlmkconsent@i2capmark.com or +44 20 3633 1212).

Questions may also be directed to the corporate finance and investor relations department of NLMK Group (ir@nlmk.com or +7 495 504 0 504 (ext. 227)).

The steel company is based in Lipetsk, Russia.

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