Interpipe to redeem USD 32.4 mln of notes

Ukraine’s largest pipe and railway wheel producer Interpipe
(INTHOL) will redeem at par USD 32.4 mln of its 2024 notes on Oct. 5, according
to the company’s Sept. 25 announcement filed with the Luxembourg stock
exchange.

After this early redemption, the amount outstanding of
INTHOL’24 notes will be USD 81.3 mln, according to Concorde Capital
calculations.

Recall, Interpipe redeemed USD 97 mln of its notes in August
and USD 98.5 mln in January.

Dmytro Khoroshun: Interpipe
had about USD 85 mln of cash around Sept.
22, and therefore should be able to finance the redemption with its own funds.

We see the following possible reasons for Interpipe’s
redemption of its notes: the high interest cost, the owner’s hypothetical intention to sell the company,
 and the scenario of the company refinancing the remainder of the
notes, possibly paying out dividends from the funds raised.