Item 1.01 Entry into a Material Definitive Agreement
On May 24, 2016, Allegheny Technologies Incorporated (the “Company”) completed its offering and sale of $250,000,000 million
aggregate principal amount of the Company’s 4.75% Convertible Senior Notes due 2022 (the “Notes”). The offering and sale of the Notes were made pursuant to the Company’s shelf registration statement filed with the Securities and
Exchange Commission (the “SEC”).
The Notes were issued pursuant to the Indenture, dated June 1, 2009 (the
“Indenture”), between the Company and The Bank of New York Mellon, as trustee (the “Trustee”), as supplemented by the Fifth Supplemental Indenture, dated May 24, 2016 (the “Supplemental Indenture”), between the
Company and the Trustee.
The Notes will accrue interest at the rate of 4.75% per annum and be payable in cash semi-annually in
arrears on each January 1 and July 1, commencing January 1, 2017. The Notes will mature on July 1, 2022. The Company may not redeem the Notes prior to their stated maturity date. If the Company undergoes a fundamental change,
holders of Notes may require the Company to repurchase the Notes in whole or in part for cash at a price equal to 100% of the principal amount of the Notes to be purchased plus any accrued and unpaid interest to, but excluding, the repurchase date.
Holders of Notes may convert their Notes into shares of the Company’s common stock, $0.10 par value (“Common Stock”) at
their option at any time prior to the close of business on the business day immediately preceding the stated maturity date for the Notes. The initial conversion rate for the Notes will be 69.2042 shares of Common Stock per $1,000 principal amount of
Notes, equivalent to an initial conversion price of $14.45 per share of Common Stock. The conversion rate will be subject to adjustment in certain events.
If an event of default with respect to the Notes occurs, the principal amount of the Notes, plus premium, if any, and accrued and unpaid
interest may be declared immediately due and payable, subject to certain conditions. These amounts automatically become due and payable in the case of certain types of bankruptcy, insolvency or reorganization events of default involving the Company.
The foregoing is a summary of the material terms and conditions of the Indenture, as supplemented by the Supplemental Indenture, and is
not a complete discussion. Accordingly, the foregoing is qualified in its entirety by reference to the full text of the Indenture, which was filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K filed with the SEC on June 3,
2009, and the Supplemental Indenture, which is filed as Exhibit 4.2 to this Current Report on Form 8-K, each of which is incorporated herein by reference. A form of Note is included in Exhibit 4.2. The opinion of the Company’s counsel as to the
validity of the Notes and the shares of Common Stock issuable upon conversion of the Notes is filed as Exhibit 5.1 to this Current Report on Form 8-K.