Magnetation LLC.  announced the commencement of solicitations to eligible holders of its 11.000% Senior Secured Notes due 2018 (the "Notes") to purchase by assignment certain loans and commitments outstanding under its Debtor-in-Possession Credit Agreement (the "DIP Credit Agreement") dated as of May 7, 2015, among Magnetation, the lenders party thereto (the "Lenders") and Wilmington Trust, National Association as administrative agent (the "DIP Solicitation").

On May 5, 2015, Magnetation and its subsidiaries commenced voluntary cases under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Minnesota.

The DIP Credit Agreement provides for a senior secured super-priority debtor-in-possession term loan facility in an aggregate principal amount of up to $135 million (plus capitalized fees and interest) (the "DIP Loans"), consisting of approximately $3.8 million of loans rolled up from existing term loans held by the Lenders, approximately $63.7 million of  new term loans made by the Lenders and up to $67.5 million of loans rolled up from eligible holders of Notes.

Eligible holders of Notes as of May 12, 2015 (the "DIP Solicitation Record Date") (Rule 144A Notes: CUSIP 559417AA8 and ISIN US559417AA83 and Regulation S Notes: CUSIP U5565PAA5 and ISIN USU5565PAA58) will have the opportunity to purchase by assignment and assume an aggregate principal amount of DIP Loans and commitments equal to the aggregate principal amount of all DIP Loans and commitments multiplied by a fraction (expressed as a percentage) (i) the numerator of which is the aggregate outstanding principal amount of Notes owned by, and subscribed under by, such holder, and (ii) the denominator of which is the aggregate outstanding principal amount of all Notes held by the Lenders plus the aggregate outstanding principal amount of Notes owned by eligible holders that participate the DIP Solicitation and subscribed under, in each case, as of the DIP Solicitation Record Date.