Kernel places 7Y Eurobond at 6.75%, reports on early tender results
22 October 2020
Ukraine’s leading farmer and vegetable oil producer
Kernel (KERPW, KER PW) completed on Oct. 20 the placement of its USD 300 mln
Eurobond maturing in October 2027. The placement rate was 6.75%, which is 105
bps below Ukraine’s sovereign curve.
The company also reported that the holders of USD 286
mln of its Eurobond maturing in January 2022 have agreed to sell their notes as
of the early tender deadline of Oct. 19. Recall, the company announced on Oct.
5 an offer to tender up to USD 350 mln of the 2022 notes. The ultimate deadline
of the tender is Nov. 2.
Alexander Paraschiy: As we expected, Kernel’s
debt extension operation has proceeded successfully. Meanwhile, it looks like
the company will be able to repurchase a lesser amount of its 2022 Eurobonds
than had been planned. We are keeping our neutral view on KERPW.
