Rusal holders agree to amend dollar-denominated fixed-rate notes

By Wendy Van Sickle

Columbus, Ohio, March 19 – United Co. Rusal plc said holders of its Rusal Capital DAC subsidiary’s dollar-denominated fixed-rate notes issued in January and April of 2017 and January of 2018 agreed on some amendments to the terms and conditions of the notes, according to a press release.

The amendments aimed to “harmonize the covenant packages across [Rusal’s] debt portfolio and to introduce a common approach to covenant calculation,” according to the release.

Key amendments include:

• The calculation of leverage ratio is amended so as to exclude from its calculation (i) debt, secured by Norilsk Nickel shares, and (ii) dividend flow, resulting from ownership of these shares; however, the total amount of such debt secured by Norilsk Nickel shares, does not exceed 75% of the market value of respective shares;

• The maximum leverage ratio, beyond which, subject to certain exceptions, further debt may not be incurred is reduced to 3 times from 3.5 times; and

• If any acquisition of Norilsk Nickel shares or depositary receipts pursuant to a legally binding process is begun within 12 months of the mandate having been granted by the shareholders as disclosed in the company’s announcement dated Feb. 23, no event of default will be triggered by any default arising from such acquisition, provided such default is remedied or waived within three months.

The amendments are expected to take effect on Wednesday.

Rusal is an aluminum company based in Moscow.

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