Metinvest B.V. (the Netherlands), the parent company of Metinvest international vertically integrated steel and mining group of companies, announced it had completed the restructuring of its financial debt totaling $2.3 billion.
According to the group, as a result of the agreement achieved three issues of the group’s eurobonds maturing in 2016, 2017 and 2018 were annulled, which also means the abolition of defaults and other liabilities on all the issues.
Instead of these issues new eurobonds worth $1.2 billion maturing in late 2021 and with new conditions were issued.
In addition, four contracts on syndicated pre-export financing credit lines were set out in a new wording, which foresees the abolition of defaults and other liabilities on these lines. The new version, among other things, provides for the unification of the four credit lines into one worth $1.1 billion maturing in mid-2021, according to a press release.
Commenting on the event, Yuriy Ryzhenkov, Chief Executive Officer of Metinvest, said: “The group had to embark on a debt restructuring due to multi-year low global prices of steel and iron ore products, reduced production volumes amid the conflict in Eastern Ukraine, and its inability to refinance. This deal is unprecedented for the industry and corporate sector of Ukraine. The restructuring negotiations started in early 2015, and we have been in constructive dialogue with all stakeholders throughout this time. The group has always respected its obligations to creditors, having never demanded a write-off of any part of debt. With creditors’ support, we have arrived at a common solution, cured defaults, deferred repayments for five years and issued new instruments. As such, we have increased our creditors’ confidence and maintained the group’s access to international capital markets. We would also like to thank our legal advisors, Allen & Overy and Baker & McKenzie, our financial advisor, Rothschild, and our information agent, Lucid.” (SCM/Ukrainian metal)