Information on the Stages of Securities’ Issue
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15.02.2011
Information on the Stages of Securities’ Issue
Statement of Material Fact
"Information on the Stages of Securities’ Issue"
1. General Information
1.1. Full name of the Issuer
(for non-commercial organization – name) Magnitogorsk Iron and Steel Works Open Joint Stock Company
1.2. Abbreviated company name of the Issuer OJSC MMK
1.3. Location of the Issuer 93 Kirova Street, Magnitogorsk, Chelyabinsk Region, Russia, 455000
1.4. OGRN of the Issuer 1027402166835
1.5. INN of the Issuer 7414003633
1.6. Unique code of the Issuer as assigned by the registration body 00078-A
1.7. WEB page used by the Issuer to disclose information http://www.mmk.ru/rus/shareholders/information/infsecur/index.wbp
2. Contents of the Statement
“Information on the approval of decision on the (additional) securities’ issue”
2.2. This statement of a material fact containing the information on the approval of decision on the (additional) securities’ issue, sets forth the following:
2.2.1. The Issuer’s managing body which approved the decision on the (additional) securities’ issue and the procedure of decision-making (in particular, the type of general meeting (annual or extraordinary) shall be stated in case the Issuer’s managing body which granted the approval for the decision on the (additional) securities’ issue was General Shareholders’ Meeting of the Issuer, and the voting mode (collective presence and/or absentee voting): the Board of Directors of OJSC MMK, absentee voting
2.2.2. The date and place of the meeting of the Issuer’s authorized managing body where it was resolved to approve the decision on the (additional) securities’ issue: February 14, 2011, Magnitogorsk
2.2.3. The date of number of the minutes of the meeting of the Issuer’s authorized managing body where it was resolved to approve the decision on the (additional) securities’ issue: Minutes #8 dated February 14, 2011
2.2.4. Quorum for the issue regarding the approval of decision on the (additional) securities’ issue and voting results: 10 members of the Board of Directors participated in absentee voting, namely A.M. Gorodisskiy, S.V. Krivoschekov, K. Yu. Levin, Sir D. Logan, V.F. Rashnikov, Z. Kh. Rustamova, R.S. Takhautdinov, O.V. Fedonin, Peter Charow, V.I. Shmakov.
There is a quorum, the meeting is deemed qualifying.
The results of the voting:
“IN FAVOUR” - _10_ votes of the members of the Board of Directors (A.M. Gorodisskiy, S.V. Krivoschekov, K. Yu. Levin, Sir D. Logan, V.F. Rashnikov, Z. Kh. Rustamova, R.S. Takhautdinov, O.V. Fedonin, Peter Charow, V.I. Shmakov)
«AGAINST» - 0 votes
«ABSTAINED» - 0 votes
The decision was taken.
2.2.5. Class, category (type), series and other identification features of the placed securities: Documentary Interest-Bearing Non-convertible Exchange-traded Bearer Bonds with a Mandatory Centralized Custody of BO-15 Series, with an early call option on the holders' request and at the issuer's discretion (hereinafter, «Exchange-Traded Bonds»)
2.2.6. Maturity period (for the Bonds and options of the Issuer): 1,092 (one thousand and ninety two) days after the starting date of the issued Exchange-Traded Bonds’ placement
2.2.7. The number of placed securities and nominal value of each security placed (in case such nominal value is provided for by the applicable laws of the Russian Federation): 5,000,000 (five million) bonds with nominal value of RUB 1,000 (one thousand) each, with a total nominal value of RUB 5,000,000,000 (five billion)
2.2.8. Placement procedure for the securities, and in case of placement through а private offering, group of prospective purchasers of the placed securities: Public offering
2.2.9. The price for the securities' placement and the procedure used to determine such price:
The price for placement of Exchange-Traded Bonds of BO-15 Series is fixed to be 100 (one hundred) percent of the Exchange-Traded Bonds’ nominal value, amounting to RUB 1,000 (one thousand) per one Exchange-Traded Bonds of BO-15 Series.
Starting fr om the second day of the issued Exchange-Traded Bonds’ placement, when concluding a transaction to purchase the Exchange-Traded Bonds of BO-15 Series, a purchaser will also have to pay accrued coupon yield from Exchange-Traded Bonds (hereinafter, ACY), calculated as follows:
ACY = Nom * C1 * (T - T0) / 365/ 100%, wh ere
ACY - accrued coupon yield, RUB.
Nom – nominal value of one Exchange-Traded Bond, RUB;
С1 - interest rate of the first coupon period, annual percentage rate;
T – current date of the Exchange-Traded Bonds’ placement;
T0 –starting date of the Exchange-Traded Bonds’ placement.
The amount of the accrued coupon yield calculated for one Exchange-Traded Bond of BO-15 Series shall be determined to a precision of one kopeck, with the rounding-off made as per mathematical rounding rules, which means that the integral kopeck value:
1) does not change if the first figure following the rounded figure is within the range of 0 to 4, and
2) changes to one if the first figure following the rounded figure is within the range of 5 to 9.
2.2.10. The period (in particular, the starting date and the final date) of the securities’ placement and the procedure used to determine such period:
The starting date of the placement and the procedure used to determine such date:
The placement may be started at least 7 (seven) days after the date when the Issuer and the stock exchange which granted the admission to trading for the Exchange-traded Bonds, disclosed the information on the admission of the Exchange-traded bonds to trading on the stock exchange
The notification on the Exchange-traded Bonds’ admission to trading during the placement and on the procedure to be used to access the information set forth in the Securities’ Prospectus shall be published by the Issuer in such manner and within such period as stated in paragraph 11 of the Resolution on the Securities’ Issue and paragraph 2.9.10 of the Securities’ Prospectus.
The starting date of the Exchange-traded Bonds’ placement shall be fixed by the individual executive body of the Issuer.
In case on the date of event which must be disclosed by the Issuer under the applicable federal laws and regulations of the federal executive body for securities market, the procedure and period for disclosing of such event are different from those specified by the Resolution on the Securities’ Issue and the Securities’ Prospectus, the above event shall be disclosed within the period and using such procedure as required by the applicable federal laws and regulations of the federal executive body for securities market, applicable on the date of such event.
The notification on the starting date of the Exchange-traded Bonds’ placement shall be published by the Issuer in accordance with the Regulations on Information Disclosure by Securities’ Issuers approved by Order of The Federal Financial Markets Service # 06-117/pz-n dated 10.10.2006 within the following periods:
• In the Interfax newsline or that of any other information agency, authorized by the federal executive body for securities market to disclose the information on securities market (hereinafter, the newsline) - within at least 5 (five) days before the starting date of the securities’ placement;
• On the Issuer’s web-site in the Internet: http://www.mmk.ru – within at least 4 (four) days before the starting date of the securities’ placement.
The starting date of the Exchange-traded Bonds’ placement fixed by the individual executive body of the Issuer may be changed upon the individual executive body’s decision, provided that the requirements for the procedure used to disclose the information on the changed starting date of the Exchange-traded Bonds’ placement under the applicable laws of the Russian Federation, the Resolution on Securities’ Issue and the Securities’ Prospectus, are complied with.
In case the Issuer resolves to change the starting date of the securities placement, which date was disclosed using the above procedure, the Issuer shall publish a notification of the changed starting date of the Exchange-traded Bonds’ placement in the newsline or on its Internet web-site within at least 1 (one) day before such date.
The final date of the placement and the procedure used to determine such date:
The final date of the Exchange-traded Bonds shall be the earlier of the following dates:
а) the 5th (fifth) business day from the starting date of the Exchange-traded Bonds’ placement;
б) the date of the last issued Exchange-traded Bond’s placement
2.2.11. Other conditions for the securities’ placement in accordance with the resolution on such placement:
Procedure for determination of the bond yield to be paid in respect of every Exchange-Traded Bond:
The bond yield for Exchange-Traded Bonds of BO-15 Series shall be paid based on specified periods (i.e. coupon periods).
The Exchange-Traded Bonds of this issue have 6 (six) coupon periods.
Each coupon period will last for 182 (one hundred and eighty two) days.
The first coupon’s interest rate shall be fixed:
- based on the results of the Tender for the determination of the first coupon’s interest rate for Exchange-Traded Bonds of BO-15 Series, arranged by the Exchange among the prospective purchasers of Exchange-Traded Bonds of BO-15 Series on the placement date of Exchange-Traded Bonds of BO-15 Series, or
- by the individual executive body of the Issuer before the placement date of Exchange-Traded Bonds of BO-15 Series in case Exchange-Traded Bonds of BO-15 Series are placed in accordance with the addressed requests collected from purchasers willing to purchase Exchange-Traded Bonds of BO-15 Series for a fixed price and with a fixed coupon rate.
The interest rate for the second, third, fourth, fifth and sixth coupon of Exchange-Traded Bonds of BO-15 Series shall be fixed in accordance with the Resolution on Securities Issue and the Securities Prospectus.
Form and procedure of settlements and maturity of the Exchange-Traded Bonds:
Exchange-Traded Bonds of BO-15 Series shall be redeemed through non-cash settlements in the Russian Federation currency. The holders of Exchange-Traded Bonds of BO-15 Series are not allowed to choose the form of settlements.
Settlements’ Starting Date:
the 1,092nd (one thousand and ninety second) day from the starting date of the issued Exchange-Traded Bonds’ placement.
Settlements’ Ending Date:
The settlements’ ending date for Exchange-Traded Bonds of BO-15 Series shall be the same as the settlements’ starting date
The non-cash payments shall be made in the Russian Federation currency to the holders of Exchange-Traded Bonds of BO-15 Series who were registered as such with Non-Bank Financial Institution Closed Joint Stock Company “Natsionalny Raschetny Depozitariy” as of the close of its trading day preceding the 3rd (third) business day before the maturity date of Exchange-Traded Bonds of BO-15 Series.
Exchange-Traded Bonds of BO-15 Series shall be redeemed by the Paying Agent by order and at the expense of the Issuer, with such Agent’s details being stated in the Resolution on Securities Issue and in the Securities Prospectus.
The Resolution on Securities Issue and the Securities Prospectus shall specify other terms and conditions of redemption of Exchange-Traded Bonds of BO-15 Series.
Early redemption of Exchange-Traded Bonds of BO-15 Series is possible at the Issuer’s discretion or at holders’ request.
The Resolution on Securities Issue and the Securities Prospectus shall specify the procedure and terms of the early redemption of Exchange-Traded Bonds of BO-15 Series at holders’ request or at the Issuer’s discretion.
Other terms of the Exchange-Traded Bonds’ placement:
Exchange-Traded Bonds of BO-15 Series shall be placed provided that they are paid up in full.
To purchase the issued Exchange-Traded Bonds of BO-15 Series, non-cash payments in the Russian Federation currency shall be made.
Payment by installments is not allowed when purchasing Exchange-Traded Bonds of BO-15 Series.
Settlements under the transactions for purchase of the placed Exchange-Traded Bonds of BO-15 Series shall be made on the “delivery against payment” basis, through Non-Bank Financial Institution Closed Joint Stock Company “Natsionalny Raschetny Depozitariy” in accordance with the Rules for Clearing Operations of Clearing Companies on the Securities Market. Settlements under the concluded transactions for purchase of the placed Exchange-Traded Bonds of BO-15 Series shall be made on the relevant transaction date.
Exchange-Traded Bonds of BO-15 Series may be placed based on the results of the Tender for determination of the first coupon’s interest rate or in accordance with the addressed requests collected from purchasers willing to purchase Exchange-Traded Bonds of BO-15 Series for a fixed price and with the first coupon’s interest rate fixed by the Issuer in advance as provided for by the Resolution on Securities Issue and the Securities Prospectus.
The funds sufficient to fully pay for the Exchange-Traded Bonds specified in the purchase requests including all relevant fees and charges must be reserved on the Trading Participants’ trading accounts with Non-Bank Financial Institution Closed Joint Stock Company “Natsionalny Raschetny Depozitariy”.
The pre-emption right is not applicable for the purchase of the Exchange-Traded Bonds.
The proportion of securities which, if unplaced, will cause the issue to be recognized as failed, is not specified.
The costs associated with making entries in respect of crediting the placed Exchange-Traded Bonds to the custody accounts of initial holders (purchasers) with the Depositary providing centralized custody for the Exchange-Traded Bonds, shall be borne by the holders (purchasers) of the Exchange-Traded Bonds.
The Resolution on Securities Issue and the Securities Prospectus shall specify other terms and conditions of the placement of Exchange-Traded Bonds of BO-15 Series.
2.2.12. Availability of pre-emption right to the Issuer’s participants (shareholders) and/or other persons willing to purchase the securities: The pre-emption right is not applicable for the purchase of the Exchange-Traded Bonds.
2.2.13. OJSC MMK undertakes to disclose the information after every stage of the securities’ issue as required by the applicable laws of the Russian Federation.
3. Signature
3.1. Corporate Secretary of OJSC MMK
acting under power of attorney #16-yur-427 dated 17.12.2010 V.N. Khavantseva
(signature)
3.2. Date « 14 » February 2011 STAMP