Ferrexpo extends maturity of all its 2016 notes
3 July 2015
Ukraine’s largest iron pellet exporter Ferrexpo (FXPOLN) drew a higher support rate for restructuring from the holders of its 2016 USD 286 mln notes as of July 2. That day, 99.48% of the registered holders, representing 94.04% of the outstanding notes, voted in favor of an exchange. This is an improvement from the result of the early deadline on June 15, when holders representing 84.53% of the outstanding notes supported the offer. With such voting results, the principal amount of the 2016 notes will be exchanged for USD 100 mln in cash (implying a 35% downpayment) and USD 186 mln in new notes, maturing in equal installments in 2018 and 2019. The coupon rates of the new notes will be 10.375%, up from 7.875% for the 2016 bond.
Roman Topolyuk: The bolstered support was the result of the company’s lucrative conditions, including a rich 35% cash upfront payment. As a result of the restructuring, the debt maturing in 2016 has been minimized to USD 234 mln, including USD 208 mln in PXF. We now project net operating cash flow of USD 147 mln and free cash flow of USD 95 mln for Ferrexpo in 2016, as well as cash on balance sheet of USD 269 mln (estimated as of end-2015), which will cover the scheduled repayments in 2016.
