Eurochem Finance receives needed consents at adjourned meeting

Chicago, March 12 – Eurochem Finance DAC successfully amended the terms of its outstanding $700 million of 5½% notes due 2024 (ISIN: XS1961080501, US29873VAB09) guaranteed by EuroChem Group AG and MMC EuroChem JSC, according to a notice.

An extraordinary resolution was passed at an adjourned meeting on March 12.

The consent solicitation deadline was extended to noon ET on March 7 after there was a lack of quorum at the first scheduled meeting on Feb. 26.

The original consent deadline was noon ET on Feb. 21.

As previously reported, the issuer was seeking noteholder consent to some proposed amendments that would, among other things, allow payments of principal and interest bypassing the principal paying agent or the clearing systems.

The issuer cited sanctions against the Russian government, individuals and entities, together with Russian counter-measures, as the cause of disruptions to the infrastructure for settlement of securities, including the process of making payments due under the notes and canceling purchased securities.

The issuer was also soliciting consents to extend the grace period, during which a failure to make payments of any amount of principal or interest can be remedied without causing an event of default, to 60 business days from seven business days (for principal) and 10 business days (for interest or other amounts). Each note would continue to bear interest during the grace period.

The group said that although it expects to redeem the notes and to make the next interest payment when due, it wishes to extend the grace period to avoid a technical event of default for a delay in making payments caused by operational or technical disruptions, as well as potential delays in receipt of the necessary authorization from the relevant Russian authorities or legal restrictions that may affect wire transfers and cause instability in the operations of the banking sector.

Additionally, the issuer was seeking to amend some operative provisions of the trust deed and the terms and conditions of the notes to enable cancellation of the notes that may be purchased or otherwise beneficially held by the group, which has become limited by current restrictions.

The issuer said it reserves the right to publish copy of any notice to the noteholders at the official website of any of the guarantors (https://www.eurochemgroup.com/; https://www.eurochem.ru/) or the trustee (https://i2capmark.com/event-details/72/Holder/eurochem-finance-dac).

The information and tabulation agent is i2 Capital Markets Ltd. (info@i2capmark.com; +44 20 3633 1212).

EuroChem is a fertilizer company based in Moscow.

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