Severstal gets consents from more than two-thirds of noteholders

Chicago, Aug. 11 – PAO Severstal announced the receipt of consents from more than two-thirds of noteholders for its $634,051,000 outstanding 5.9% series 3 loan participation notes due 2022 in a notice on Thursday.

The company was seeking consents to amend the terms of the notes in response to international sanctions.

In summary, and previously reported, Severstal was seeking consents to pay noteholders in rubles, defer an interest payment and redeem the loan and notes early.

Severstal was also seeking consent to defer the April 2022 interest and coupon to the payment date with no accrued default interest or similar payment and/or being payable with respect to any amount of the April 2022 interest and/or coupon. To date, the interest under the loan and under the notes due on April 17 have not been paid and remain outstanding.

Lastly, Severstal was seeking consent for an early redemption of the loan and the notes then outstanding at par with accrued interest on Aug. 29.

Severstal had extended the deadline to 11 a.m. ET on Aug. 16.

The loan participation notes were issued by Steel Capital SA on Oct. 15, 2012 for the purpose of funding a loan to Severstal. The original issue size was $750 million.

Questions can be directed to Lecap at that email address or by calling +7 495 1220517.

Severstal is also available to answer questions (+7 495 9610195, ir@severstal.com).

Severstal is a steel and mining company based in Cherepovets, Russia.

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