Russia’s Chelpipe passes extraordinary resolution for 4½% notes

Chicago, Aug. 9 – Chelpipe Finance DAC, an Irish company founded for the purpose of issuing debt instruments and financing loans to ChelPipe Group, announced the passing of an extraordinary resolution relating to its $300 million 4½% loan participation notes due 2024, according to a notice.

As background, TMK acquired an 86.54% stake in Chelpipe in March.

As part of the integration process, the companies were seeking to align the covenant packages while providing the noteholders with recourse to the assets of the wider TMK Group and ensure that both the loan participation notes of TMK and Chelpipe are backed by substantially the same credit.

With the implementation of the proposals, TMK is now the new parent company of the group under the terms of the loan agreement.

Consenting noteholders will receive a $5 consent fee per $1,000 principal amount of note, as the extraordinary resolution was passed.

A meeting was held via teleconference on Aug. 3.

A quorum at the meeting was necessary and then a vote of approval of not less than 75% of those present.

Payment is expected Aug. 10.

The solicitation agent was J.P. Morgan Securities plc (+44 20 7134 2468, em_europe_lm@jpmorgan.com).

The information and tabulation agent was Lucid Issuer Services Ltd. (+44 20 7704 0880, chelpipe@lucid-is.com).

Chelpipe is a Chelyabinsk, Russia-based manufacturer of tubular products for fuel and energy companies.

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