Metinvest restructuring comes to end on March 22

Ukraine’s leading steel holding Metinvest (METINV) announced on March 20 that the settlement date on its Eurobonds is March 22. The aggregate amount of new notes outstanding is USD 1,197 mln at the settlement date. The holding is going to pay USD 4.787 mln in cash interest (30% of interest accrued since Jan. 31 to settlement date) and USD 8.391 mln in restructuring fees. Metinvest decided not to use an option to pay interest on the notes that were capitalized since January 2016 (about USD 62 mln).

Andriy Perederey: The settlement date is later than we expected, but we can say that the restructuring process is finalized and we see the pricing of the new bond very soon. Also, the company’s cash payment is in line with our projection and the total amount paid will be 1.1% (we expected the total amount to be paid between 0.83% and 3.16%). Also, we see the new bond’s price at the same levels as before the older bonds stopped actively trading (around 95% of par). And we are keeping our bullish view on Metinvest bonds.