Outokumpu to seek approval to amend 5.125% and 5.875% notes

By Jennifer Chiou

New York, Jan. 27 - Outokumpu Oyj announced that it will hold Feb. 7 meetings in Helsinki at which it will ask holders of its €250 million of 5.125% notes due 2015 and €150 million of 5.875% notes due 2016 to approve some amendments to the note indentures.

The company said in a news release that it is moving forward with measures to strengthen its balance sheet. Outokumpu is also in negotiations to amend and extend its current debt financing arrangements.

The company plans to pledge some of its subsidiary shares and other assets as security for its credit facilities, and noteholder consent is needed in order to do so. If the consent solicitation is successful, the noteholders will benefit from the same security package.

In addition to asking noteholders to consent to the security package, Outokumpu is proposing changes that would appoint CorpNordic Finland Oy as the agent and asking noteholders to grant an irrevocable consent to the execution and completion of the divestiture of the Acciai Speciali Terni and Outokumpu VDM units to ThyssenKrupp, while waiving all claims any holder has or may have under the subordination deed against any member of the ThyssenKrupp Group and/or any other person.

The company is offering a consent fee of 0.5% for the 5.125% notes and 0.8% for the 5.875% notes for those who submit voting instructions in favor of the resolution prior to 6 a.m. ET on Feb. 6.

A fee of 0.1% will be offered to noteholders who attend a meeting and vote in favor of the resolution.

Based in Espoo, Finland, Outokumpu produces stainless steel.

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