Mriya gets USD 14 mln for working capital from bondholders

Ukrainian farming company Mriya (MRIYA) has received an additional USD 14 mln tranche of working capital funds from existing bondholders, the company reported on July 21. The funds were raised to complete the harvest, as well as to prepare for the autumn sowing season. The transaction increases total working capital to USD 41 mln. In May 2016, Mriya secured working capital financing of USD 27 mln.

Roman Topolyuk: Mriya seems to have finally convinced its creditors to provide additional working capital, which was crucial for the company to continue operating as a going concern. Certain delays with this funding in March has impacted the timing of its spring crop sowing and will negatively affect harvest yields this season, which is a subject for improvement next year. The company is still exposed to certain liquidity risks, and raids by former owners on some assets (its logistics center was raided in early July) have disrupted operations. Moreover, these raids are hard to predict. On the other hand, quotes on Mriya’s bonds are between 6 to 8 cents per dollar, which we consider to have bottomed. Our view is neutral on Mriya’s Eurobonds at this stage.