Severstal makes early redemption payment for 5.9% series 3 notes

By Mary-Katherine Stinson

Lexington, Ky., Aug. 29 – PAO Severstal confirmed the early redemption of its outstanding 5.9% series 3 loan participation notes due 2022 in a notice on Monday.

The early redemption payment was made to noteholders who held notes through the Russian National Settlement Depository and other Russian custodians.

In line with the written resolution passed earlier in August, Severstal also made direct payments to noteholders who hold their notes through foreign nominee holders, but elected, by application to Severstal, for payments to be made to a ruble account and delivered the payment prior to the early redemption date.

As previously reported, on Aug. 11 Severstal announced it received consents from more than two-thirds of noteholders to amend the terms of the notes in response to international sanctions in order to pay noteholders in rubles, defer the April 2022 interest payment and redeem the loan and notes early on Aug. 29.

The loan participation notes were issued by Steel Capital SA on Oct. 15, 2012 for the purpose of funding a loan to Severstal. The original issue size was $750 million.

The redeemed notes were redeemed at par plus interest, including the April 2022 coupon.

Questions can be directed to Lecap at that email address or by calling +7 495 1220517.

Severstal is also available to answer questions (+7 495 9610195, ir@severstal.com).

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

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