NLMK receives consent for direct payments on 2023 Eurobonds to investors through Russian infrastructure

MOSCOW. Sept 13 (Interfax) - NLMK has received the consent of holders of dollar-denominated Eurobonds maturing in 2023 to use an alternative payment mechanism, which, in particular, will allow the steel maker to carry out direct payments in rubles to investors whose rights are recorded in Russian infrastructure, according to a statement by Steel Funding DAC, the issuer of Eurobonds.

NLMK on August 12, made a proposal to holders of four issues of the company's Eurobonds in dollars and euros to change the terms of the issues, allowing direct payments to owners whose rights are accounted for via Russian infrastructure, with this group of investors receiving payments in rubles at the Central Bank's exchange rate.

The company also asked to coordinate for each issue the possibility of payments in alternative currencies - that is, not in those in which the issue was originally denominated, which could be dollars and euros, British pounds, Swiss francs and rubles. This part of the offer was later amended and ruble were removed from the list of alternative currencies.

In addition, to win more time to implement its proposals before the Eurobond interest payment deadlines, NLMK separately asked the holders of three dollar-denominated bond issues to agree to waive claims in the event of any violations of the terms of the Eurobond documentation caused by the issuer's inability to pay interest, until December 31, 2022.

NLMK has three issues of dollar Eurobonds outstanding with maturities in 2023, 2024 and 2026, as well as one issue of Eurobonds in euros maturing in 2026.

According to the Steel Funding DAC announcement published on September 12, consent to change the terms of servicing the issue maturing in 2023 has been received.

Consent to change the terms for servicing the 2024 bonds was received last week.

The issues maturing in 2026 will be voted on again due to the lack of a quorum. The new vote on the dollar issue is scheduled for September 19, the voting deadline is September 17. A repeat vote on the euro issue will take place on September 26 with a voting deadline of September 24.