News

16 July 2014

Tender offer results for notes due 2018 and 2019

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES OF AMERICA, ITS TERRITORIES AND POSSESSIONS (INCLUDING PUERTO RICO, THE U.S. VIRGIN ISLANDS, GUAM, AMERICAN SAMOA, WAKE ISLAND AND THE NORTHERN MARIANA ISLANDS), ANY STATE OF THE UNITED STATES, AND THE DISTRICT OF COLUMBIA (THE "UNITED STATES") OR TO ANY U.S. PERSON (AS DEFINED IN REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (EACH A "U.S. PERSON")) OR TO ANY PERSON LOCATED OR RESIDENT IN ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO DISTRIBUTE THIS ANNOUNCEMENT. OTHER RESTRICTIONS MAY APPLY.

NLMK Group ("NLMK"), the largest steel producer in Russia and a leading international steel company, today announces that the offer made by Steel Funding Limited (the "Offeror") a special purpose vehicle established for the purpose of issuing of debt instruments for financing loans to NLMK, to eligible holders of its US$800,000,000 4.45% Loan Participation Notes due 2018 (ISIN: XS0808632847) (the "2018 Notes") and the US$500,000,000 4.95% Loan Participation Notes due 2019 (ISIN: XS0783934325) (the "2019 Notes" and together with the 2018 Notes, the "Notes") to tender their Notes for purchase by the Offeror for cash in a Modified Dutch Auction (each such invitation, an "Offer" and, together, the "Offers") expired at 4.00pm London time on Tuesday 15 July.

The Offeror, in conjunction with NLMK, has accepted for purchase, subject to satisfaction of the conditions set out in the Offers documents, an aggregate principal amount of U.S.$92,415,000 of the 2018 Notes and U.S.$29,286,000 of the 2019 Notes, resulting in an approximate aggregate principal amount of U.S.$707,585,000 of the 2018 Notes remaining outstanding, and an approximate aggregate principal amount of U.S.$470,714,000 of the 2019 Notes remaining outstanding.

The Purchase Price for the 2018 Notes was set at U.S.$1,015 per U.S.$1,000 principal amount of 2018 Notes, and the Purchase Price for the 2019 Notes was set at U.S.$1,010 per U.S.$1,000 principal amount of 2019 Notes.

About NLMK Group
NLMK Group is a vertically integrated steelmaking company, and Russia's leading manufacturer of steel and HVA rolled products. NLMK Group's high-quality steel products are used in a variety of industries, from construction and machine-building to the manufacture of power generation equipment and offshore windmills. NLMK's production facilities are located in Russia, Europe and the USA. The Company's crude steel capacity is over 17 m tpa, of which approximately 16 m t are located in Russia. The Company generated $10.9 billion in revenue and $1.5 billion in EBITDA in 2013. NLMK's ordinary shares are traded on the Moscow Stock Exchange (ticker "NLMK") and its global depositary shares on the London Stock Exchange (ticker "NLMK:LI"). For more information about NLMK Group, please visit www.nlmk.com

Neither this announcement, the Tender Offer Memorandum nor the electronic transmission thereof constitutes an offer to buy or the solicitation of an offer to sell Notes (and tenders of Notes for purchase pursuant to the Offers will not be accepted from Noteholders) in any circumstances in which such offer or solicitation is unlawful.