LCPIS acts as information and tabulation agent in relation to Severstal Eurobonds–2022
On 11 August 2022 PJSC “Severstal” (“Severstal”) announced the successful completion of the consent solicitation for its Series 3 Loan Participation Notes in aggregate principal amount of U.S.$750,000,000. The Notes were issued by Steel Capital S.A. in the framework of the Programme for the Issuance of Loan Participation Notes for the purpose of funding loans to Severstal.
As a result of sanctions introduced by the EU, the U.S. and the UK against Severstal as well as Russian counter-sanctions, the company faced certain difficulties in connection with processing currency payments of interest or principal under the Notes. In order to ensure the maximum possible rights of investors in the current conditions to receive payments on Eurobonds, on 13 July 2022 Severstal launched consent solicitation process seeking consents of the holders of the Notes to amendments to payment mechanics providing for the possibility of making payments in roubles, as well as to early redemption of the Notes. LCPIS was appointed as information and tabulation agent for the deal.
In order for the proposed amendments to become effective, Severstal had obtain consents of the Noteholders representing in aggregate not less than two thirds in principal amount of the Notes outstanding at the time which equaled U.S.$634,051,000.
LCPIS is an independent competent bondholder representative (Russian analogue of trustee) representing bondholders in 160+ bond issues for a total amount of more than 1.5 trillion rubles. For five consecutive years (2017–2021), LCPIS took the first place in the bondholder representative annual ranking conducted by Cbonds, the leading Russian financial information agency. In 2021, LCPIS won in the newly introduced Best Bondholder Representative nomination by Cbonds Awards.