Davis Polk is advising Magnetation LLC (“Magnetation”) in connection with its restructuring under Chapter 11 of the Bankruptcy Code and a related $135 million debtor-in-possession (“DIP”) financing facility. Magnetation and its four wholly owned subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the District of Minnesota on May 5, 2015.

In connection with its restructuring, Magnetation has obtained a $135 million secured superpriority term loan DIP financing facility, with Wilmington Trust, National Association acting as administrative agent, and an ad hoc committee of existing senior secured noteholders (the “Ad Hoc Group”) acting as lenders and backstop parties, which was approved by the Bankruptcy Court on May 7, 2015. The DIP financing facility consists of approximately $63.7 million of new term loans made by the Ad Hoc Group, approximately $3.8 million of loans rolled up from existing term loans held by the Ad Hoc Group and up to $67.5 million of loans rolled up from eligible holders of existing senior secured notes.

Magnetation is an innovative producer of iron ore concentrate and iron ore pellets, with three iron ore plants in the Minnesota Iron Range and an iron ore pellet plant in White County, Indiana. Magnetation is a vertically integrated producer, extracting iron ore concentrate from previously commercially worthless “tailings” left behind by decades of conventional iron mining in the Minnesota Iron Range, and beneficiating that iron ore concentrate into iron ore pellets, one of the principal inputs in the steelmaking process.

The Davis Polk restructuring team includes partners Marshall S. Huebner and Damian S. Schaible, associates Michelle M. McGreal, Kevin J. Coco, Daniel M. Silberger, Amy Ma and Stephen D. Piraino. The credit team includes associate Russ McCracken. The capital markets team includes partner Michael Kaplan and counsel Meredith L. Mackey. Partner Kathleen L. Ferrell provided tax advice. All members of the Davis Polk team are based in the New York office.

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