| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers E > Headlines for Evraz plc > News item |
Evraz does not expect to make payments on 5 3/8%, 5¼% notes
By Wendy Van Sickle
Columbus, Ohio, Sept. 16 – Evraz plc said it will not make payment of the $18.9 million of interest due on Sept. 20 on its 5 3/8% notes due 2023 and that it does not expect to make payment of the $18.4 million of interest due on Oct. 2 on its 5¼% notes due 2024, according to an announcement Friday.
The company is prohibited from making payments in respect of the notes without a license from the United Kingdom sanctions regulator, the Office of Financial Sanctions Implementation of HM Treasury. On July 15, the company said, it sent a request for such license, but that it has not received a license.
Even if Evraz did receive a license, the company said “there would remain significant challenges to making payment of the interest due on the 2023 notes and the 2024 notes. It is not yet clear whether regulatory restrictions or technical issues will prevent the paying agent from making, or agreeing to make, payment of the interest due in respect of the 2023 notes and the 2024 notes to the clearing systems. In addition, even if the company were able to make payment of interest to the clearing systems, payments to a significant number of the holders and beneficial holders of the 2023 notes and the 2024 notes would be blocked by the clearing systems as a result of their holdings being held through the Russian clearing system.”
Evraz said it is exploring options to meet its obligations to noteholders.
The company added that it has sufficient liquidity to make the payments due under the two series of notes. At June 30, the company had consolidated cash and cash equivalents of $793 million, it reported.
Evraz is a vertically integrated steel making and mining company based in London with operations mainly in Russia.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.