Based on the provisions of the Rules of the Ljubljana Stock Exchange, d.d., Ljubljana and applicable legislation, the company SIJ – Slovenska industrija jekla, d.d., Gerbičeva ulica 98, Ljubljana (hereinafter: SIJ d.d. or the Issuer) in connection with the terms and conditions of the notes issued by the company SIJ - Slovenska industrija jekla, d.d. hereby informs that its subsidiary SIJ Americas, Inc., with business place in the United States of America (hereinafter “SIJ Americas”), wishes to enter into a senior secured revolving credit facility on a borrowing base structure (the “US Facility”) with a third-party financing provider (the “US Lender”) (the borrowing of the US Facility hereinafter also the “Transaction”).

The proceeds from the Transaction will be used to:

1. fund ongoing working capital requirements and general corporate purposes of SIJ Americas;
2. provide liquidity to SIJ d.d. and its other subsidiaries (the “Group”), including through the repayment of existing loans and past due payables; and 
3. pay fees and expenses related to the Transaction.

As a condition to the US Facility, the US Lender will, among other things, require that SIJ Americas grants a first‑ranking, perfected security interest (the “US Security”) over all of SIJ Americas’ existing and future tangible and intangible assets and the US Lender will also require proof that no other security exists over such assets.

Contractual documentation which is binding on the members of the Group and the terms and conditions of the notes with security code SIJ9 (ISIN: SI0032105247) (the “Notes“) provide for certain restrictions which affect the carrying-out of the Transaction, as follows:

1. Condition 7.2 of the Notes restricts granting security by the members of the Group for the benefit of third parties; and
2. SIJ Americas is a party to the ICA, (as defined in the terms and conditions of the Notes) as a Debtor and is therefore required in the near future to grant security over its main assets for the benefit of the holders of the Notes and the other beneficiaries of the security under the ICA.

Therefore, in order to enable SIJ Americas to enter into the US Facility, SIJ d.d. intends in the near term to invite the holders of the Notes to vote on an amendment of the terms and conditions of the Notes to allow the granting by SIJ Americas of security securing its liabilities under the US Facility with the principal amount up to US$30 million and to take such steps as may be necessary to release SIJ Americas from its obligations under the ICA.

In accordance with Condition 1.6 of the Notes the Issuer simultaneously publishes the text of the ICA as currently in force.

The published information will also be available online at www.sij.si for a period of no less than 5 years.