MHP seeks to maintain 10.25% coupon in Eurobond restructuring

Myronivsky Hliboproduct, in a letter to Eurobond holders on Monday, said it planned to maintain the coupon rate at 10.25% in its restructuring offer. Last week, MHP offered its existing bondholders to swap their USD 250 mln Senior Notes due 2011 for new dollar-denominated Senior Notes due 2015. The new notes will have par value 3.3% to 6.3% higher than the old ones, depending on the date the offer is accepted. The swap is intended to be completed by May 13, 2010. The purpose of the exchange is: (1) to lengthen MHP’s debt maturity profile; (2) to repay an estimated aggregate USD 100 mln in short-term loan facilities to Ukrainian banks; and (3) use the remaining balance to finance construction of the Vinnitsya factory and extend the land bank by 120 ths ha to 300 ths ha.