Simpson Thacher represented the initial purchasers, led by joint book-running managers, J.P. Morgan Securities LLC, Jefferies LLC and Deutsche Bank Securities Inc., in the sale of an aggregate principal amount of $325 million 11.0% Senior Secured Notes due 2018 by Magnetation LLC (“Magnetation”) and Mag Finance Corp. The Firm also represented JPMorgan Chase Bank, N.A., as administrative agent, and J.P. Morgan Securities LLC, as sole lead arranger and sole bookrunner, in connection with a new $50 million senior secured revolving credit facility for Magnetation. The notes and the credit facility obligations are both guaranteed on a senior secured basis by each of Magnetation’s existing and future direct and indirect domestic subsidiaries, other than, in respect of the notes, Mag Finance Corp.
Magnetation is a natural resources company that focuses on the design, development, construction, and operation of facilities that produce iron ore concentrate from previously abandoned iron ore waste stockpiles and tailings basins on the Mesabi Range in northern Minnesota.
The Simpson Thacher team included Art Robinson, Ryan Bekkerus, Will Golden and Jennifer McGroarty (Capital Markets); Alexandra Kaplan, Dan Brown, Chinh Vo, Jonathan Pall and Janet Nadile (Credit); Andrew Purcell and Sophie Staples (Tax); Mardi Merjian (Real Estate); Timothy Mulvihill (Environmental); Jamin Koslowe and Patricia Adams (Executive Compensation and Employee Benefits); Jodie Pimentel and Samantha Himelman (Intellectual Property); and Jennie Getsin (Blue Sky).