LCPIS acts as information and tabulation agent and proxy in relation to Severstal Eurobonds–2024
On 3 November 2022, PJSC “Severstal” (“Severstal”) announced the successful completion of the consent solicitation for its Series 6 Loan Participation Notes in aggregate principal amount of U.S.$800,000,000 (the “Notes”). 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 12 October 2022 Severstal launched consent solicitation process seeking consents of the holders of the Notes, inter alia, to amendments to payment mechanics providing for the possibility of making payments in roubles. Voting of the Notes holders took place at the meeting held via teleconference (the “Meeting”).
LCPIS was appointed as information and tabulation agent for the deal. LCPIS was also designated as vote proxy and acted as a representative authorised to vote on behalf of those Notes holders unable to attend the Meeting.
LCPIS is an independent 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.
In the Eurobond market, LCPIS acts as trustee, proxy, information and tabulation agent.