“TMK” announced amendments to the credit agreement and the credit agreement guarantee (including addenda), concluded in connection with the issuance of Eurobonds maturing in 2020 (ISIN XS0911599701), said in a press release.
While these changes: unconditionally and irrevocable manner terminate the obligations and releasing the company IPSCO Tubulars Inc. from its obligations under guarantees provided in respect of the loan and entail entering into a credit agreement in a number of subsequent changes, providing for – among other things – that the company IPSCO is not required to become a guarantor of the loan in the future, and therefore that the company IPSCO is excluded from the number of parties to the Treaty on the loan guarantees.
These changes were made after a meeting of bondholders at which it was decided by a qualified majority to amend the credit agreement and the credit agreement guarantee. November 23 is set as a provisional date for payment of fees.
“TMK continues to consider in respect of IPSCO, a number of strategic projects, and made now the changes will provide TMK flexibility in choosing the optimal variant of the strategy of the Group aimed at maximizing the value of IPSCO as an asset for the Group TMK”, – stated in the message of the company.
After making changes, TMK intends to use the bulk of the revenue that it will receive from the sale of any of the strategic projects, to repay debt of TMK, equivalent or higher level relative to bonds.
The issue volume $500 million were placed in March 2013 at a rate of 6.75% per annum.