Essar Steel Minnesota receives enough consents to amend 11½% notes

By Angela McDaniels

Tacoma, Wash., June 27 – Essar Steel Minnesota LLC obtained the consents it was seeking from the holders of its $450 million of 11½% senior secured notes due 2020, according to a company news release.

Accordingly, the supplemental indenture and the amendment to the escrow agreement giving effect to the proposed amendments have been executed. Those amendments include an extension of some conditions relating to the notes.

The consent solicitation began June 23 and expired at 5 p.m. ET on June 26. The company expected to pay the consent fee to all noteholders on June 27.

Further terms of the consent solicitation were not disclosed.

The company said that sufficient financing of at least $200 million remains available to the project during the proposed extension period and will be spent during that time and that the extension will not alter the expected timetable to begin production by the middle of 2015.

Credit Suisse Securities (USA) LLC (800 820-1653 or 212 325-2544) was the solicitation agent. D.F. King & Co., Inc. (800 549-6650 or 212 269-5550 banks and brokers) was the tabulation agent.

The iron ore producer is based in Hibbing, Minn., and is part of India-based Essar Group.

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