Outokumpu obtains approval to amend 5 1/8% and 5 7/8% notes

By Toni Weeks

San Luis Obispo, Calif., Feb. 10 - Outokumpu Oyj announced that it received consents from holders of its €250 million of 5 1/8% notes due 2015 and €150 million of 5 7/8% notes due 2016 for a security package and amendments of the terms and conditions of the notes as well as certain transactions and changes to the subordination deed.

The consents and waivers became effective immediately after being approved. The amendments to terms and conditions will be effective after some refinancing measures have been completed, at which time the company will pay the relevant instruction fees. However, noteholders may receive 50% of the relevant fees if the refinancing measures are not completed by March 9, with the remaining fees to be paid no later than five business days after completion, if such completion has occurred by June 30.

The company previously said it was moving forward with measures to strengthen its balance sheet and was in negotiations to amend and extend its current debt financing arrangements.

Outokumpu wanted to pledge some of its subsidiary shares and other assets as security for its credit facilities, and noteholder consent was needed to consent to a security package.

The company had also proposed changes that would appoint CorpNordic Finland Oy as the agent and had asked noteholders to grant an irrevocable consent to the execution and completion of the divestiture of the Acciai Speciali Terni and Outokumpu VDM units to ThyssenKrupp, while waiving all claims any holder had or may have under the subordination deed against any member of the ThyssenKrupp Group and/or any other person.

Outokumpu offered a consent fee of 0.5% for the 5 1/8% notes and 0.8% for the 5 7/8% notes for those who submitted voting instructions in favor of the resolution prior to 6 a.m. ET on Feb. 6 and 0.1% to noteholders who attended the meeting and voted in favor of the resolution. The meeting was held on Feb. 7 in Helsinki.

Based in Espoo, Finland, Outokumpu produces stainless steel.

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