Kernel prices new Eurobond
11 October 2019
Ukrainian sunflower oil producer and grain trader
Kernel (KER PW, KERPW) on Oct. 10 priced its new five-year USD 300 mln Eurobond
at 6.625% yield to maturity, according to a Bloomberg report on the same date.
The Eurobond’s re-issue price was 99.475% of par with a 6.5% coupon. The
settlement for the deal is scheduled for Oct. 17.
Kernel will have options to call its new Eurobond in
three years at 103.25% of par, in four years at 101.625% of par, and in 4.75
years at par.
Dmytro Khoroshun: We calculate
that the spread to Ukraine’s sovereign curve for the new Kernel Eurobond at
pricing was about 38 bps, the same as the spread for the existing KERPW’22
Eurobond. Therefore, the new Eurobond was placed without any new issue premium,
which we consider a success for Kernel, especially considering it secured
several call options on the new Eurobond.
We remain bullish on KERPW Eurobonds.
