PJSC Magnitogorsk Iron & Steel Works (MOEX: MAGN; LSE: MMK)
notifies on the further extension of the Consent Solicitation for its
outstanding U.S.$500,000,000 4.375 per cent. Guaranteed Notes due
2024.
On 6 June 2022, PJSC Magnitogorsk Iron & Steel
Works (the “Guarantor”) announced a consent solicitation in
relation to the outstanding U.S.$500,000,000 4.375% Notes due 2024
issued by MMK International Capital DAC (the “Issuer”) ISIN:
XS1843434959 (Regulation S) / US553142AA88 (Rule 144A); Common Code:
111730628 (Regulation S) / 111730628 (Rule 144A Common code)) (the
“Notes”) on the terms and subject to the conditions set forth in
the Consent Solicitation Memorandum dated 6 June 2022 (the “Consent
Solicitation Memorandum”). On 9 June 2022, the Guarantor extended
the Consent Deadline from 9 June 2022 (4 p.m. (London time)) to 16
June 2022 (4 p.m. (London time)), and on 17 June 2022, the Guarantor
further extended the Consent Deadline from 16 June 2022 (4 p.m.
(London time)) to 30 June 2022 (4 p.m. (London time)). Capitalized
terms used, but not defined herein, shall have the meanings given to
them in the Consent Solicitation Memorandum.
Given the vast number of requests from the holders
of the Notes (the "Noteholders"), the Guarantor has
extended the Consent Solicitation period to 13 July 2022 ("New
Consent Deadline").
At the same time, any payments in relation to the
Notes by the Guarantor or the Issuer for the benefit of the
Noteholders may get blocked, frozen or delayed for an uncertain
period of time by the clearing systems or other entities processing
those payments due to continuing blocking restrictions introduced by
the EU and UK authorities, breakdown in transaction functionality
between the EU and Russian clearing systems and the new currency
control rules introduced by the Russian authorities.
Considering the foregoing, the Guarantor hereby
notifies that it is technically not in the position to make the
payment of the coupon due on 13 June 2022 and along with this assures
that:
it has sufficient financial resources to
service the debt under the Notes and is making every effort to
effect the payment of coupon due on 13 June 2022 to the Noteholders
as soon as processing of payments would be legally and technically
possible;
to ensure the receipt of the sums due under
the Notes by the Noteholders, the Guarantor filed the applications
to the relevant US, UK and Irish authorities for the purposes of
receiving the licenses from those authorities which are required to
permit the making of payments under the Notes and the exercise of
rights and obligations by all parties in relation to the Notes in
compliance with all applicable sanctions.
For any inquiries please contact with the
Guarantor’s Investor Relations department via email at: ir@mmk.ru.
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