PJSC Magnitogorsk Iron & Steel Works (MOEX: MAGN; LSE: MMK)
notifies of OFAC designation and respective measures in relation to
U.S.$500,000,000 4.375% Guaranteed Notes due 2024.
On 2 August 2022, PJSC Magnitogorsk Iron &
Steel Works (the “Guarantor”) and its ultimate beneficial
owner Viktor Filippovich Rashnikov were designated by Treasury
Department’s Office of Foreign Assets Control (“OFAC”)
and added to the OFAC’s SDN list pursuant to Executive Order 14024
On 3 August 2022, OFAC issued (a) General License
No. 47A authorizing the wind down of transactions involving certain
entities blocked on August 2, 2022 (including the Guarantor); and (b)
General License No. 48A authorizing divestment or transfer of debt or
equity of, and wind down of derivative contracts involving, certain
entities blocked on August 2, 2022 (including the Guarantor) (the
In the Guarantor’s view, the Event might affect
the performance of payment obligations by the Guarantor in relation
to U.S.$500,000,000 4.375% Notes due 2024 issued by MMK International
Capital DAC ISIN: XS1843434959 (Regulation S) / US553142AA88 (Rule
144A); Common Code: 111730628 (Regulation S) / 111730628 (Rule 144A
Common code) (the “Notes”).
The Guarantor is currently analyzing the
consequences of the Event and the issued General Licenses with its
legal and financial counsel and the ways how to mitigate the
potential negative consequences of the Event to the holders of the
Notes. The Guarantor has already filed applications with the
regulatory bodies in relevant jurisdictions seeking to obtain
licenses that would, if granted, enable the Guarantor, the Issuer,
the Principal Paying Agent and the Clearing Systems to receive and
process payments in relation to the Notes.
The Guarantor intends to provide further
information to Noteholders as soon as practicable.
Should the Noteholders have any additional
questions, please contact with the Guarantor’s Investor Relations
department via email at: email@example.com.