“TMK” announced the convening of a meeting of holders of Eurobonds maturing in 2020 (ISIN XS0911599701).
The bond holders will be invited to consider and, if deemed advisable, to approve a resolution that would provide for the entering into the credit agreement and the guarantee agreement on the loan relating to the bonds, certain changes, including the release of IPSCO Tubulars Inc. from the obligations provided by this company guarantee, it is told in the company message.
“TMK continues to consider in respect of IPSCO Tubulars Inc. a number of strategic projects. Changes in the credit agreement, if implemented, will provide TMK flexibility in choosing the optimal variant of the strategy of the group aimed at maximizing values of IPSCO Tubulars Inc. as an asset for the Group TMK,” said the company.
In case of approval of the above changes, TMC 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.
TMK is ready to pay the holders of securities who voted for the proposed changes, the Commission for agreement in the amount of $6.25 per $1,000 of principal debt at nominal value.
The company discussed the proposal for obtaining approval and proposed changes with the rating agencies Standard & Poor’s and Moody’s, and expects the current credit ratings assigned to the Bonds issue (Moody’s: B1; and S&P: B+) does not change in the event of any proposed changes.
The offer is valid until November 14, 2017, with earlier consent until November 7, 2017. Owners ‘ meeting and the announcement of results is scheduled for November 16, 2017.
The issue volume $500 million were placed in March 2013 at a rate of 6.75% per annum.