Metinvest to launch another consent solicitation

Metinvest (METINV), Ukraine’s largest steel and iron ore
producer, will launch a further consent solicitation for amending certain terms
and conditions that govern restricted payments, according to an announcement
dated Dec. 15.

 

The further consent solicitation will be limited to
two of the company’s five Eurobond tranches, METINV’26 and METINV’27, because
of the results of respective noteholder meetings held on Dec. 15.

 

Namely, Metinvest announced that the resolution in
respect of its METINV’26 tranche was not passed at the meeting. Furthermore,
the meeting of METINV’27 holders passed the resolution, but the Eligibility
Condition (the quorum required and the requisite majority of votes cast) was
not satisfied.

 

Metinvest said its understanding was that certain
noteholders encountered difficulties in submitting their meeting-related
documents after Metinvest’s Dec. 12 announcementof changes to consent solicitation terms. The reason was the limited period
between the Dec. 12 announcement and the expiration time for the deal
(initially set at around noon London time on Dec. 13), according to Metinvest.

 

If all the documents submitted with respect to
METINV’26 and METINV’27 tranches between the expiration time and the relevant
noteholder meetings were taken into account, the corresponding meetings would
have passed the resolutions and satisfied the Eligibility Condition, the
announcement said.

 

The resolution was passed by the noteholder meetings
in respect of three other tranches, METINV’23, METINV’25 and METINV’29,
Metinvest announced, adding that the Eligibility Condition has also been
satisfied at these meetings.

 

Recall, on Nov. 22 Metinvest launched the consent solicitationasking the holders of all five of its Eurobond tranches outstanding to amend,
via extraordinary resolutions, certain terms and conditions that govern
restricted payments. Dividends and other distributions, certain investments
(including acquisitions of minority interests in other entities), and the
purchase or redemption of equity interests and subordinated indebtedness
comprise the restricted payments.

 

Dmytro Khoroshun: Metinvest
will succeed with its further consent solicitation and the restricted payment
terms will in the end be amended, we expect.

 

This is because the difficulties with the METINV’26
and METINV’27 tranches seem to be a result of technical nature, and the
noteholders were willing to pass the resolutions, we understand from the
announcement.

 

We maintain our neutral view on METINV bonds.