São Paulo, July 16, 2020 – COMPANHIA SIDERÚRGICA NACIONAL (“Company” or “CSN”), in addition to the Material Facts disclosed on February 20th and July 12th, 2019, informs its shareholders and the market in general that its subsidiary, CSN Mineração SA ( “CSN Mineração”) signed on this date a new long-term iron ore supply contract with the Swiss trading company Glencore International AG (“Glencore”).
The transaction involves an initial prepayment to CSN Mineração of US$115,000,000.00, related to the supply of iron ore of approximately 4 million tons for up to 5 years. This new contract has mechanisms that give it flexibility so that the amount of the prepayment is increased if it is in the interest of the parties, and also reflects CSN’s better credit profile by incorporating better conditions in relation to previous contracts, in particular a grace period for amortization. The disbursement will occur when certain conditions precedent are met, which are customary for this type of transaction.
The announcement is an additional step by the Company towards a healthy and sustainable capital structure, as part of its deleveraging plan previously disclosed to the market.
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CSN is a highly integrated company, with steel, mining, cement, logistics and energy businesses. The Company operates throughout the entire steel production chain, from the mining of iron ore to the production and sale of a diversified range of high value-added steel products. Thanks to its integrated production system and exemplary management, CSN’s production costs are among the lowest in the global steel sector.