Severstal repurchases $19.2 million of Holdgrove’s 1% convertibles

By Susanna Moon

Chicago, June 29 – Russia’s PJSC Severstal said it bought back $19.2 million of subsidiary Holdgrove Ltd.’s $61.8 million outstanding 1% senior convertible bonds due Sept. 24, 2017.

The notes were repurchased in the open market by Severstal’s affiliates on Tuesday, according to a company notice.

After the repurchase, there is $42.6 million of the convertibles left outstanding.

Severstal said it plans to buy back more or all of the bonds in the open market through its affiliates and agents.

Last year, on Aug. 13, Severstal holders exercised the put option on $390 million, or 82%, of the 1% convertibles with the notes redeemed at par plus accrued interest on Sept. 24, as previously announced.

The notes were putable from June 26, 2015 to Aug. 10, 2015.

Holdgrove issued $475 million of the convertibles on Sept. 24, 2012. The bonds are convertible into Global Depositary Receipts listed on the London Stock Exchange, each one representing one common share of Severstal.

The Regulation S bonds are guaranteed by Severstal.

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